Tech

Tesla considers building its next factory in Austin or Tulsa

Key Points
  • Tesla is eyeing Austin, Texas, and Tulsa, Oklahoma, as two potential homes for its next production facility.
  • Both cities are attractive to Tesla because they're centrally located in the U.S., making it easier to deliver to the East Coast.
Workers walk outside the Tesla Inc. Gigafactory in Shanghai, China, on Friday, Nov. 1, 2019.
Qilai Shen | Bloomberg | Getty Images

Tesla has zeroed in on two locations in Texas and Oklahoma as possible homes for a new final assembly plant, according to a source intimately familiar with the site search.

This week Tesla representatives visited two locations in Tulsa, Oklahoma, to see if they would be the right place for the company's fifth Gigafactory. Another possible location for Tesla's next plant is Austin, Texas, a source familiar with the search told CNBC.

The website Electrek previously reported Tesla CEO Elon Musk had decided the next Gigafactory will be in Austin, citing unnamed sources.

A spokesperson for Tesla declined to comment on questions about the company's search for a location of the next Gigafactory.

Both Tulsa and Austin meet the requirements for Tesla's next final assembly plant, which Musk has said will be the company's "Cybertruck" Gigafactory. The midsized cities have strong manufacturing workforces and their location in the central U.S. would help support vehicle production for states in the Midwest and Eastern U.S.

While Tulsa and Austin are two cities being considered for the next Gigafactory, Tesla may also be evaluating other locations around the country.

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Tesla planning to build factory in Austin, Texas: Electrek