$97 Million Texas Gigafactory Land Acquisition Is Tesla's Best Deal to Date
Tesla's recent purchase of land for its Gigafactory in Texas set the electric vehicle maker back an eye-watering $97 million.
While the company undeniably paid a substantial sum for the piece of land, a look back at the record books reveals that this deal was actually the company's cheapest Gigafactory real estate transaction to date.
Tesla's best real estate deal
After several months of negotiation, Tesla pulled the trigger on its Texas Gigafactory location, located 15 minutes outside of downtown Austin, Texas. The land was previously owned by TXI Operations LP, the Austin Business Journal reported.
As Teslarati reports, Tesla's purchase of the Texas land plot is actually the best deal the company has struck on a piece of property.
Giga Shanghai, in China, was built on 214 acres of land purchased for over 973 million Chinese Yuan, or around $139.638 million. That means it cost approximately $652,514 per acre.
Giga Berlin in Germany, meanwhile, was purchased at $48 million for 740 acres of land, coming to just over $64,860 per acre.
At $97 million, Tesla's 2,100-acre Texas Gigafactory constitutes Tesla's best deal yet as it comes to around $46,190 per acre.
Preparing for the Cybertruck's launch
Tesla plans to open the Texas Gigafactory for business in 2021. The opening is being touted as a victory for the Austin region, as it will bring thousands of jobs to the area and will help it to pull out of the deep economic recession it's experiencing due to the impact of COVID-19.
Tesla plans to move forward quickly on its Texas Gigafactory — the company has already started leveling the ground in Austin. The electric automaker plans to open the facility in 2021 coincide with the manufacturing of the Cybertruck, which will begin production next year.