When Donald Trump ran for president in 2016, he vowed that he wanted to see more manufacturing jobs in the United States.
So when Tesla founder and CEO Elon Musk announced that his new Tesla plant would be located in Austin, TX, Trump was ecstatic, sending along oodles of praise for the car manufacturer.
“Great job by @elonmusk in agreeing to build, in TEXAS, what is expected to be the largest auto plant anywhere in the world. He kept his word to me. Texas & @Tesla are big winners. MADE IN THE USA!” Trump tweeted on Friday.
Tesla is a major player in the electric automobile market. When Elon Musk announced he was looking to build a new factory to produce the new Cybertruck, the hope was that those jobs would remain in the United States.
Tesla currently has manufacturing facilities in California, Nevada, and New York, as well as in Shanghai. A factory in Berlin is currently under construction.
Musk announced Wednesday that plans are already underway for building the “Gigafactory” after locking the deal down with Governor Greg Abbott (R).
Both Trump and Governor Abbott tweeted out their excitement about the fact we will have a new automobile manufacturing plant located here in the United States.
Tesla picks Texas for its Cybertruck factory.
The Gigafactory will employee thousands of Texans & be a cornerstone for next generation innovation.
It’s been fun to get to know you.
Welcome to Texas. pic.twitter.com/PsnfaEUHaz
— Greg Abbott (@GregAbbott_TX) July 22, 2020
New plant means more jobs
According to The Verge, Tesla will be hiring up to 5,000 new workers for the Austin plant.
The trickledown effect of the deal will have significant economic impacts throughout the state. Beyond the new manufacturing jobs at the plant, the decision will impact the local housing market, not to mention the boom it will provide to other local small businesses in the area who will now have thousands of new potential customers.
Texas continues to be a big lure for businesses, entrepreneurs, and working Americans due to the fact the state does not have a state income tax. That is a HUGE boost in the paycheck compared to states like California, Hawaii, and Oregon, who have 13.3, 11, and 9.9 percent income tax respectively.
Texas is one of only seven states in the U.S. that still does not have a state personal income tax.