Tesla intends to construct a nearly $200 million battery production facility in the vicinity of Houston.
Tesla Expands Domestic Manufacturing Footprint with $237 Million Investment in Texas
Tesla is set to expand its operations in Texas, with plans to invest $237 million in a plant complex in Brookshire, near Houston. The project, which is expected to employ as many as 1,500 people, will see the production of 10,000 megapack battery units annually.
The investment will cover building improvements, a new heating and cooling system, and installation costs of distribution equipment in the additional property. The county commissioners court approved two tax abatement agreements for Tesla on March 5, through which the company intends to lease additional property in Brookshire, Texas.
At least 50 jobs at the plant will pay more than $150,000 annually, while the other positions will offer salaries ranging between $50,000 and $100,000. Shiv Mysore, senior manager, engineering programs for Tesla, stated that the project planned for the Brookshire site "will be a replication of the same factory" the company operates in California. The plant will be similar to Tesla's Lathrop, California megafactory.
Tesla's focus on expanding domestic manufacturing is a strategic move to mitigate tariffs by the Trump administration on imports from China, a major source of EV batteries. The company's domestic manufacturing expansion is part of a larger trend in the industry, as automakers seek to reduce their reliance on foreign suppliers.
Cox Automotive projected that EV sales will represent 10% of all U.S. vehicle sales in 2025. Tesla's Model Y and Model 3 were the top-selling EVs in the U.S. in 2024, further solidifying the company's position as a leader in the electric vehicle market.
Despite requests for comment from Automotive Dive, Tesla did not respond regarding the expansion in Brookshire, Texas. However, the company remains focused on expanding its stationary energy storage business, a key component of its overall strategy.
The exact timeline for the expansion in Brookshire, Texas is not disclosed. The article does not provide information on Tesla's growing competition in the EV segment.
