Trump's tariffs force Tesla to move

Tesla has announced the construction of a new Megafactory in Texas, near Houston, after reaching a tax exemption agreement with Waller County.

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This agreement, which was confirmed by the County Commissioners Court, involves a significant investment in facility and manufacturing equipment improvements, totaling $194 million, broken down into $44 million for facility improvements and $150 million in manufacturing equipment.

The Megafactory will occupy a huge building in the Empire West industrial park, which was previously leased by the logistics company DB Schenker.

Return to the United States to avoid tariffs?

This company handled parts for Tesla in the same space, but will withdraw to make way for the new Megapack production facility, energy storage devices developed by Tesla.

In addition, the construction of a new distribution facility valued at $31 million is planned. This part of the project will include about $2 million for distribution equipment and improvements to the building. This development is expected to generate around 1,500 new jobs in the region, thus increasing Tesla’s presence in the energy sector in Texas.

Although Tesla’s energy business growth has been remarkable, last year prices and margins faced a decline.

Tesla already operates Megapack factories in Lathrop, California, and in Shanghai, China, each with a production capacity of 40 GWh per year. However, it has not yet been clarified whether the new Megafactory in Texas will have a similar production capacity.

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For now, Tesla has not issued official comments on the project, but the interest in expanding its energy production remains a crucial part of its long-term business strategy.