Tesla Expands Energy Business with New Megafactory in Texas

Image Credit: Reuters

Tesla (TSLA) plans to build a new megafactory near Houston, Texas, to operate a battery storage facility, according to a report by Electrek on Wednesday. The facility, located near Katy, Texas, will be used to produce Tesla's Megapack energy products in a building spanning over 1 million square feet.

As part of a tax abatement agreement with Waller County, Tesla will receive property tax reductions for facility upgrades, including $44 million for improvements and $150 million for manufacturing equipment. Tesla and the Waller County Economic Development Partnership have not responded to requests for comment.

While Tesla primarily generates revenue from its electric vehicle business, CEO Elon Musk has focused on expanding the company's solar energy and battery sectors. Tesla operates a similar gigafactory in China, where it started production trials last year to benefit from the country's supply chain and lower lithium-ion battery costs.

The new Texas plant is expected to create around 1,500 jobs.

Paraphrasing text from "Reuters" all rights reserved by the original author