To: Mr. Elon Musk, CEO of Tesla, Inc.
From: Ralph Bivins, editor of Realty News Report and author of Houston 2020: America’s Boom Town – An Extreme Close Up, and the people of Houston.
Re: Locating Tesla in Houston
In response to your Saturday tweet that “Tesla will now move its HQ (from Palo Alto, Calif.) and future programs to Texas/Nevada immediately,” and in light of the lawsuit you filed May 9 regarding Alameda County officials who prevented production at Tesla’s Fremont facility, Houston offers a concrete, practical incentive package for consideration. Nothing is official yet, but possible relocation proposals from Houston could include the following concepts.
Sir: Houston would be honored to welcome Tesla Inc.’s headquarters to Houston — the Energy Capital of the World, home to NASA’s Johnson Space Center and the Texas Medical Center, the largest medical complex in the world. Texas is reopening after the pandemic, and the restrictive shutdown orders that prompted your legal action in California would not be repeated here.
Executive Summary: Houston is prepared to offer (1) 250,000 square feet of Class A office space in downtown Houston, finished to your specifications and available within 30 days for Tesla Inc.’s headquarters. The proposal includes two years of free rent and a 10-year property tax abatement.
In addition, Houston would provide (2) a grant of 10 acres of land at Houston Spaceport, located at 13150 Space Center Drive, to support SpaceX operations. Adjacent to Ellington Field and near NASA facilities, the Spaceport offers opportunities for vehicle assembly, zero-gravity experimentation, and other aerospace development. Several ventures there are working toward near-term lunar mission capabilities.
Further, Houston leaders are prepared to offer (3) 200 acres of multi-modal manufacturing land with deep-water port access and rail service for a manufacturing campus focused on the Cybertruck or other Tesla vehicles. Houston ranks among the nation’s top markets for pickup truck sales. Major manufacturers already operate large truck plants in Texas, and the Port of Houston has extensive automotive shipping and container terminals, making logistics straightforward for large-scale production.
The Musk Vision: As oil prices recover from the historic lows seen this spring, Houston’s economy is trying to rebound from the dual impact of the pandemic and disruption in the energy sector. Tens of thousands of Houstonians have recently lost jobs or been furloughed, and several energy companies face financial distress. Houston needs visionary leadership and long-term economic diversification. Your entrepreneurial style and track record of innovation align well with Houston’s “can-do” culture.
Now: To be candid, past economic development efforts in Houston have sometimes fallen short of blockbuster outcomes. Nevertheless, the city’s real estate and civic leaders stand ready to meet with you immediately to facilitate a transition of Tesla’s headquarters to the Energy Capital of the World.
Personal: Congratulations on the recent birth of your son, X AE A-12. We also note that you listed two California properties for sale last week. Experienced Houston realtors are available to help you find a suitable residence in Texas.
Editor’s note: Houston’s economy suffered significant damage in 2020. Landing the corporate headquarters of an innovative company like Tesla would be a major economic-development victory. On Saturday, you announced plans to move Tesla’s headquarters to Nevada or Texas. That announcement was made about 48 hours ago. Have Houston representatives contacted Tesla yet? Did any local officials work over the weekend to prepare an incentive package? Have suitable sites been identified?
Does Houston still have the “fire in the belly” to make a Tesla deal happen? Or will it risk becoming another Detroit?
(Commentary by Ralph Bivins, Editor of Texas-based Realty News Report)
May 11, 2020 Realty News Report. Copyright 2020.
Read the Book by Ralph Bivins, Editor of Realty News Report
Houston 2020: America’s Boom Town – An Extreme Close Up