Electric Vehicles

Everything We Know About the Tesla Gigafactory In Texas

Gexa Energy
April 26, 2023
minutes read
Gexa Energy
Publication Date:
May 7, 2024
Last updated:
May 7, 2024

In 2020, construction began on Tesla’s Gigafactory Texas, also known as Giga Texas or Tesla Gigafactory 5. Along with being a major manufacturing facility for the automaker, the Tesla Gigafactory also serves as the company’s corporate headquarters.

With production of Tesla electric vehicles starting in 2021, the Tesla factory in Texas is in full swing. But what’s happening now? Are there any new developments?

Keep reading for all the important facts you need to know about the Austin, Texas Tesla factory.


History of the Tesla Factory in Texas  

The prospect of Tesla opening a factory in Texas goes back further than you think. Here’s a full timeline of the Tesla Texas factory opening.

2014: Nevada Beats Texas for Tesla Gigafactory 1  

In 2014, Tesla began scouting a potential manufacturing site near Austin, Texas, for its Gigafactory 1. This particular facility was located in the Greater Austin area between the towns of Taylor and Hutto.

Tesla ultimately decided to construct its first Gigafactory near Reno, Nevada, calling it “Giga Nevada.” Six years would pass before the electric car maker would reconsider building a Tesla factory in Austin, Texas.

Related: Learn more about electric vehicles

2020: Choosing and Constructing the Tesla Texas Factory Location

Throughout 2019 and early 2020, Tesla began considering locations across the United States for a new production facility. In May 2020, a short list of potential cities was created, which included Tulsa (OK), Nashville (TN), and Austin (TX). The automaker chose Del Valle, Austin for its new Gigafactory in July 2020.  

A core factor in the decision was an incentive agreement through the Texas Economic Development Act. This program is a property tax value limitation on school district taxes. In Tesla’s case, the agreement caps the property value at $80 million, as opposed to its projected $1.1 billion, reducing the overall property taxes by an estimated $50 million. In addition, Travis County awarded Tesla with additional tax rebates worth an estimated $14 million over 10 years under Chapter 381 of the Texas Tax Code. In exchange for these incentives, Tesla has agreed to pay the school district, Del Valle ISD, nearly $1 million annually.

Initial construction of the Tesla factory in Texas began in July 2020 and continued throughout 2021.  

2021: Production Begins at Tesla Gigafactory Texas  

The Texas Gigafactory began trial production of the Tesla Model Y in August 2021. Production entered full swing in 2022, with the Texas Gigafactory serving as the core manufacturing hub of the Model Y for the Eastern half of the country.  

2022: Tesla Texas Factory Opening Party

Tesla’s Gigafactory in Texas held its grand opening event, dubbed the “Cyber Rodeo,” on April 7, 2022. Tesla mogul Elon Musk hosted the party, where 15,000 people were invited, including members of the Austin city council, then Mayor Steve Adler, and Travis County Commissioners.

The Texas Giga Fest was off-limits to the news media and general public, but reports claim the party included tours, food, beverages, and live entertainment acts.

Models in Production at the Tesla Factory in Austin, Texas

With the Tesla Texas factory open and in full production, you might be wondering exactly what’s rolling off the line. Here’s what we know about the current state of manufacturing at the Telsa Gigafactory in Texas.

Keep Reading: Discover new electric cars for 2024

Tesla Model Y at the Texas Gigafactory

The Tesla factory in Austin, Texas, produces the Model Y for the eastern portion of North America.  

Tesla Cybertruck at the Texas Gigafactory

Tesla’s Gigafactory also produces the Cybertruck.    

Did you just buy a new Tesla or other electric vehicle in Texas? Check out our guide to electric car charging locations in Texas to keep the good times rolling.

Final Thoughts About Tesla in Texas

Tesla setting up a manufacturing facility in Austin, Texas, comes with many benefits for both the community and company. The existence and growth of the Texas Gigafactory are an example of EVs as a growing trend. More people are considering the pros and cons of gas vs. electric cars.  

In 2021, EV sales doubled around the world compared to 2020. Sales are strong in 2022, with Q1 sales up 75% from the same quarter in 2021. With Tesla increasing product at the Gigafactory in Texas, we won’t be surprised to see these numbers increase, with more Texans being exposed to the benefits of EVs.

FAQs About the Tesla Gigafactory in Texas

Where is the Tesla factory in Texas?  

The Tesla Texas factory is located in Del Valle, an unincorporated city within the greater Austin area. Located along the Colorado River, the Gigafactory in Texas is also outfitted with a hiking trail and boardwalk. Elon Musk describes the location as “an ecological paradise.”

Where are Tesla’s manufactured besides the Texas Gigafactory?

Tesla has factories around the world to produce its vehicles, batteries, and other technologies like solar-powered roof shingles. Here is a list of Tesla’s current production facilities as of 2022:

Location Name Products Opened
Fremont, CA, USA Tesla Fremont Factory Tesla passenger vehicles 2010
Lathrop, CA, USA Tesla Lathrop Factory Automotive parts 2014
Fremont, CA, USA Tesla Kato Road Factory Lithium-ion batteries
Automotive seats
Grand Rapids, MI, USA Tesla Tool and Die Factory Tool and die-casting equipment 2015
Storey County, NV, USA Giga Nevada “Gigafactory 1” Electric motors
Lithium-ion batteries
Tesla Megapack
Tesla Powerpack
Tesla Powerwall
Tesla Semi
Buffalo, NY, USA Giga New York “Gigafactory 2” Tesla Supercharger
Tesla solar roof
Prüm, Germany Tesla Grohmann Automation Manufacturing equipment 2017
Neutraubling, Germany Tesla Grohmann Automation Manufacturing equipment 2017
Brooklyn Park, MN, USA Tesla Brooklyn Park Manufacturing equipment 2017
Elgin, IL, USA Tesla Elgin Manufacturing equipment 2017
Richmond Hill, ON, Canada Tesla Toronto Automation Battery manufacturing equipment 2019
Shanghai, China Giga Shanghai “Gigafactory 3” Tesla Model 3
Tesla Model Y
Neuwied, Germany Tesla Grohmann Automation Manufacturing equipment 2020
Shanghai, China Tesla Shanghai Supercharger Factory Tesla Supercharger 2021
Markham, ON, Canada Tesla Toronto Automation Battery manufacturing equipment 2021
Grünheide, Germany Giga Berlin “Gigafactory 4” Lithium-ion batteries
Tesla Model Y
Austin, TX, USA Giga Texas “Gigafactory 5” Lithium-ion batteries
Tesla Model Y
Tesla Cybertruck
Lathrop, CA, USA Tesla Lathrop Megafactory Tesla Megapack 2022

How big is the Tesla factory in Austin, Texas?

Giga Texas spans 2,500 acres and boasts over 10 million square footage of factory floor.

Is Giga Texas the biggest factory in the world?

No, but it is the second largest factory in the United States, and the second largest building in the world by volume.

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Gexa Energy purchases renewable energy credits (RECs) from renewable generation resources throughout North America to match 100% of the energy sold under your electric plan. The RECs Gexa purchases represent the renewable attributes of power generated from a variety of renewable energy sources, including, but not limited to, the sun, wind, geothermal, hydroelectric, wave or tidal energy, and biomass or biomass-based waste products, including landfill gas.