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Will Hays County see a Tesla effect?

GSMP says it will add jobs and increase the workforce quality in the county area

As earth movers rumble over the site in southern Travis County where a new $1 billion Tesla assembly plant is being built, anticipation is at an alltime high for potential business development, especially in neighboring Hays County.

Jason Giulietti, executive director of the Greater San Marcos Partnership, said he’s excited to welcome the company to the area, and its estimated 5,000 employees.

“I think there’s going to be multiple halo effects the result of Tesla’s building in such close proximity to Hays County,” Giulietti said, adding that it will not only add jobs to the area but also increase the workforce quality. “They’re going to be able to command a higher paying job with maybe an extra 10-minute commute to the facility. I think a tremendous amount of their workforce will be from Hays County, it’s just going to be a natural fit.”

He added multiple suppliers will need to be prepared when the factory opens.

“What Tesla has made clear to us is they want the factory to be full service,” Giulietti said. “As an example, some factories do final assembly; still other factories will do a variety of differing components. Tesla wants everything to happen at this location.”

Giulietti said some of the parts that go into the vehicles, considered technical and complex, are going to need to be made nearby, if not in the direct footprint of the facility.

“They want it as holistic as a factory. So, in my mind, we have a tremendous amount of rich shovel ready sites in Hays County that are going to be ready for them,” Giulietti said. “Knowing that, and knowing our location and the fact we’re no more than 30 minutes away from San Marcos to the site, we’re right there to pull from.”

Giulietti isn’t the only one excited about the Tesla facility. Gov. Greg Abbott said he was thrilled with the move.

“Tesla is one of the most exciting and innovative companies in the world, and we are proud to welcome its team to the State of Texas,” Abbott said in a statement. “Texas has the best workforce in the nation, and we’ve built an economic environment that allows companies like Tesla to innovate and succeed. Tesla’s Gigafactory Texas will keep the Texas economy the strongest in the nation and will create thousands of jobs for hard-working Texans. I look forward to the tremendous benefits that Tesla’s investment will bring to Central Texas and to the entire state.”

Additionally, Giulietti believes Texas State University, given what they’re doing in some of their programs, will play a role with Tesla’s development.

“Look at what they have going on at Star Park. It’s the only research park in Texas,” he said. “Their entire park is centered around smart technology. They’re working on smart homes, smart batteries, electric vehicles, doing all that research. Tesla is going to visit them, if they haven’t already, and say we need to utilize that expertise; and say, ‘Oh, by the way we want your students.’ So, I think, they’ll capitalize on that benefit.”

He said it’s going to make the distance even shorter from San Marcos to the factory because companies will start popping up in between.

“We’re sitting so close in geography, and honestly because we have so much land availability, when you look at North Austin you look around there, it’s getting saturated; and not to mention it’s also more expensive,” Giulietti added. “Those suppliers that want to come are going to look for the best deal they could get. Our location sits right there.”

Giulietti said the San Antonio market already has the lion’s share of automotive workers relating to a basic skill, and those workers may already live in our community. The new factory may be a closer commute.

“I think certainly — in the next 12 months — you’re going to see a ton of activity here,” he said, adding that Tesla plans to deliver its first product by the end of 2021.

“That seems mind blowing because it’s a huge facility,” Giulietti said. “But if they’re going to do that, those suppliers are going to need to be here, almost on the same timeline. If not, just shortly thereafter.”

The Tesla factory, referred to as a Giga factory, will sit on 2,100 acres off Texas 130 and Harold Green Road near Austin Bergstrom International Airport.

“So, you’re talking end to end on the product, as opposed to just making a portion of the product like the housing or battery. Everything will be done in the consolidated site,” Giulietti said.

“The Cybertruck, which is their version of a pickup, is what’s going to be produced there, and they’re also talking about the electric semi which will transform the trucking industry. They’re also looking at producing a sports car/roadster which will cost a couple hundred thousand dollars.”

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Wimberley, TX 78676
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