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Wednesday, 27 May 2020 19:28

The Tesla Dilemma: Texas or Tulsa

Written by Joey Klender, Teslarati

Index

When news broke that Tesla had announced the finalists for its next Gigafactory, which actually could be called a Terafactory based on the expected cell production output, comparisons between Austin, TX, and Tulsa, OK, were rampant across social media.

Each location has its own distinct advantage and disadvantage, which I’ll explore.

 

I will start with Austin, because of the location’s notoriety as the “favorite” of the two locations. Also, it is fairly evident CEO Elon Musk seems to think highly of the Lone Star State based on his Tweets and also the presence of his SpaceX business there.

 

Texas has a lot of available land, and it’s very cheap. Houses and businesses can get the same amount of land in Texas they can in California at a significantly cheaper price. Tesla could save a lot of money on the purchase price of the land and it could be using Tulsa as leverage to get an even better deal on the Texas property.

 

One of my favorite reasons for a Texas factory is the fact the state has long been the heart of oil and gas. The world’s largest electric automaker in the same region is hysterical to me. I feel that Tesla establishing its largest and most dominant production facility in that area would be a big “middle finger” to the pollution-causing gas and oil drillers who, for a long time, have called Texas home.

 

Texas also has a hearty history of automotive manufacturing and is ranked fourth of U.S. states in the sector. Also, Tesla could provide a stable economic boost to the state. While this also applies to Tulsa, Texas already has a strong presence in automotive manufacturing, which could ease regulations and transition time in the state.

 

Texas is also home to SpaceX’s Boca Chica Launch Facility. This statement solidifies Musk’s presence in the state and makes it an already familiar option for the CEO’s other company.

 

However, Tulsa has its own array of advantages, a lot of which are similar to Texas but in a slightly different way.

 

Tulsa also offers a sizeable amount of affordable land that Tesla could use for its next production facility. Although the company has roots in Texas and not in Tulsa, local authorities are ready to make a strong push for Tesla, knowing the electric automaker could provide a substantial positive economic injection into the state’s employment rate.


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