Tesla Headed To Texas? Rumors Surface Of New Plant After Tension With California

Electric vehicle giant Tesla is looking at either Austin, Texas, or Tulsa, Oklahoma, for its new final assembly plant. The plant would likely be used to assemble the company’s energy-sustainable Cybertruck unveiled by CEO Elon Musk in November.

One anonymous source told CNBC that Tesla representatives visited two sites in Tulsa this week in search of a suitable location for the company’s Terafactory. Electric transportation news outlet Elektrek reported Friday that Tesla has chosen the Austin area as the location of the new factory.

Tesla currently has two U.S. factories in Fremont, California, and Nevada. The Fremont factory in Alameda County has sparked controversy, with Musk originally refusing to shut down the plant in March after local authorities ordered the facility to suspend operations amid the ongoing coronavirus outbreak.

Although Musk eventually agreed to shut down the plant, Musk has frequently criticized stay-at-home orders and threatened to move Tesla’s operations from California to Nevada or Texas. Musk tried to reopen the factory earlier this month, but the Alameda County Health Department warned Tesla that such a move would violate local regulations.

"Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately,” Musk tweeted.

“Tesla is filing a lawsuit against Alameda County immediately. The unelected & ignorant 'Interim Health Officer' of Alameda is acting contrary to the Governor, the President, our Constitutional freedoms & just plain common sense!” Musk continued on Twitter.

Major figures such as President Trump and Treasury Secretary Steven Mnuchin have sided with Musk in the dispute. Musk and Alameda County officials eventually reached a deal on the plant reopening.