When it was revealed that Tesla had announced the finalists for its next Gigafactory, which might actually be called a Terafactory based on the facility’s expected cell production performance, comparisons between Austin, Texas and Tulsa were rife on social media. Each location has its own advantages and disadvantages that I’ll explore.
I will start with Austin, Texas as the location is known as a “favorite” of the two locations. It’s also pretty obvious that Elon seems to have a high regard for the Lone Star State due to his tweets about the state and also the presence of his SpaceX business there.
Texas has a lot of available countries and it’s very cheap. Homes and businesses can get the same amount of land in Texas as they can in California, but at a much cheaper price. Tesla could save big bucks on the property purchase price and use Tulsa as leverage to get an even better deal on the Texas property.
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One of my favorite reasons to have a factory in Texas is because the state has long been the heart of oil and gas and the world’s largest electric car maker in the same region. I find that hysterical to me. I think Tesla, which is building its largest and most dominant manufacturing facility in the field, would be a big “middle finger” for the polluting gas and oil drills that have long been home to Texas.
Texas also has a long history of automotive manufacturing, ranking fourth out of all fifty US states in the sector. Tesla could also give the state a stable economic boost. While Tulsa is also, Texas is already heavily involved in auto manufacturing, which could ease regulations and transition times in the state.
SpaceX’s Boca Chica Launch Facility is also located in Texas. That statement solidifies Musk’s presence in the state and makes it an already known option for the CEO’s other company.
However, Tulsa has a number of advantages, many of which are similar to Texas, but in a slightly different way.
Tulsa also has a significant amount of affordable land that Tesla could use for its next manufacturing facility. Though the company has its roots in Texas rather than Tulsa, local authorities are ready to give Tesla a big boost, knowing the electric automaker could make a significant positive impact on the state’s employment rate.
Tulsa is also a bit more central than Austin as it is closer to the geographic center of the country. While it doesn’t offer much of an advantage in terms of location, it’s a bit more central than Austin.
I also feel that Tulsa wants the factory a little bit more than Austin. I could be wrong here, because which city does not want a production facility that offers more than 12,000 jobs and has positive economic effects? But Tulsa took a statue of an oil drill and put the Tesla logo on it, and I think that’s something special in itself, considering the city is rich in oil drilling. It is particularly impressive that the local figures in Tulsa are ready to sit there and modify a very notable statue in the area to advertise Tesla in their direction.
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Simple enough, it’s pretty obvious that Texas is the preferred choice. At least it is for me. While Tulsa has its perks, it just doesn’t seem to have enough perks that make it a clear favorite over Texas. Elon has also mentioned Texas multiple times, as I mentioned earlier, and economically, it gives Tesla more advantages as a company.
What do you think?
I would also like to add that last week there were a lot of great emails I received after sending the Fremont piece out. Thank you for making sure to message me. I really appreciate the feedback, and I love the fact that you share your thoughts with me, whether you agree or not. Thanks again!