Musk Finds a Welcome Home in Texas for Latest Megaprojects

KEY POINTS  

• More than 90 Musk-linked companies and entities in Texas employ an estimated 28,000 people.

• Tesla and SpaceX are pursuing major solar, manufacturing and semiconductor projects across the state.

• Terafab has prompted local concerns about transparency, public protections and tax incentives, while state leaders support Musk’s expansion.

No U.S. state has benefited more from the scale and scope of Elon Musk’s expanding business empire than Texas. The high-profile billionaire has built a network of more than 90 companies and legal entities in the state that control land and housing properties that employ an estimated 28,000 people.

Musk is even developing his own mini-city called Starbase, formerly Boca Chica Village just north of the Mexican border, in support of his SpaceX base. Starbase “resembles other small Texas towns,” New York Times opinion essay New York Times writer Amy Gamerman.

The city is run by a commission and headed by a mayor. “At their monthly meetings, the mayor and two elected commissioners conduct garden-variety municipal business, like voting to approve ordinances and starting the process to hire a police chief.” 

As Gamerman observes, “every conclusion the commission reaches seems to be a foregone conclusion, and every measure it enacts seems to benefit SpaceX. To date, all votes the commission has taken since the city was incorporated have been unanimous.”

This is not surprising given the investments and commitments Musk continues to make in the area. This includes the construction of an SpaceX gas pipeline report called “Starpipe” running from the Port of Brownsville to the SpaceX launch facility at Starbase in support of further development.

Tesla and SpaceX Projects Expand

Other Musk enterprises are expanding rapidly as well. In August, Tesla announced plans for a solar cell manufacturing facility dubbed Tesla solar facility project in Fort Bend County near Houston, at an estimated cost of $10 billion.

According to Houston Business Journal report, documents indicate the project could span more than 3,000 acres across five parcels of land. Tesla received approval in mid-September for Houston Public Media report Houston Business Journal tax-break report program.

Construction could begin before year-end with the facility operational by 2029. Crystal Sun offers the prospect of over 9,700 new full-time jobs by 2033, plus another 1,000 jobs during construction.

Tesla’s Project Crystal Sun pairs with Bloomberg report SpaceX has submitted permit applications for a new 10-gigawatt solar cell factory in Bastrop, along with plans to build aerospace-grade infrastructure for its orbital data centers.

According to Austin Business Journal report, corporate entities associated with SpaceX have purchased more than 1,360 acres in Bastrop County since May this year. This is the same area where Musk established the headquarters of The Boring Co. in 2021.

Elsewhere, Tesla has Austin Business Journal report leased a 538,720-square-foot building called Mustang Ridge project report southeast of Austin, along with a 682,000-square-foot Austin Business Journal report, five miles from the company’s Gigafactory.

Terafab’s Scale and Investment

As massive as these projects appear, they are small in comparison with SpaceX’s CNBC report to build Terafab project listing, a massive semiconductor plant for Tesla, SpaceX and xAI outside of Houston. At 100 million square feet, it could become the largest building in the world.

“Terafab Texas will be the largest and most valuable building on Earth by far,” Fox News profile wrote on X. “And it will be stunningly beautiful.” Terafab calls for an investment that could ultimately total $119 billion and Fox News jobs coverage more than 3,000 people.

In June, Grimes County commissioners approved the creation of a new tax investment zone and tax abatement for the project. “Terafab is bringing Fox News innovation coverage manufacturing to America, creating thousands of high-paying jobs in the Lone Star State and enabling us to produce AI chips at scale for use on Earth and in space,” Musk said.

Musk’s massive projects are not always well received by local residents. The Grimes County Citizens for Responsible Development (GCCRD) has GCCRD Grimes County Commissioners, requesting more details concerning the Terafab project.

Local Concerns and Public Scrutiny

They list a wide range of concerns they claim have not been addressed transparently, including how an influx of thousands of construction workers could “permanently damage the character” of the county. Officials in Grimes County say residents want firm commitments from the company in exchange for tax abatements.

“A tax abatement is one of the strongest tools that a county has to negotiate,” Marie Egyed, director of operations with GCCRD, told Chron report “Our way of life here is about to change dramatically. We’re just asking for that company to do something for us in return.”

In a counter move, SpaceX has Houston Business Journal report against Grimes County and Texas Attorney General Ken Paxton in an attempt to prevent the county from releasing information requested by GCCRD through a public records inquiry. SpaceX claims potential damage to the company could result.

Musk’s Support in Texas

However, Musk and his enterprises have support at the highest levels of the Texas State government, something he wishes to maintain. Musk has announced his Super PAC will assist the re-election of Republican Texas Attorney General Ken Paxton.

As GOP strategist Matt Langston, CNN report, “The business interests, the long-term investment that he is making, the Musk operation politically does not need to have a Democrat in their backyard. They will invest. They will get involved in a big way.” Gov. Greg Abbott is also supportive of Musk.

He has described Musk as a case study of how Texas successfully courts major corporations based on the state’s willingness to move quickly and work directly with corporate executives. “Texas is where big ideas grow even bigger,” Texas governor’s announcement Abbott.

Speaking specifically about the Terafab project, Abbott continued, “I congratulate SpaceX on this significant expansion of their investment in our great state. The first-of-its-kind Terafab facility will accelerate chip production in Texas at an unprecedented scale, create thousands of good-paying jobs in Grimes County, and expand economic opportunity for generations of Texans across Southeast Texas and beyond.”

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