Tesla, Inc. (TSLA.US) will build a factory near Houston, and the third Gigafactory will be born.

According to a tax exemption agreement reached with Waller County that was discovered by Electrek, Tesla, Inc. (TSLA.US) plans to build a new Gigafactory near Houston, Texas. The company will take over a building located in the Empire West Industrial Park near Katy, Texas, with an area of up to 1 million square feet, which Tesla, Inc. had previously leased. Tesla, Inc. will use this facility to construct a Megapack battery production line. This week, Tesla, Inc. executives stated at a Commissioner's Court meeting that the factory will be modeled after the factory in Lathrop, California, with upgrades to the existing manufacturing facility including increasing its power capacity and improving heating and cooling equipment. Tesla, Inc. will install manufacturing equipment at an estimated cost of around $150 million. The Megapack battery energy storage manufacturing factory in Katy will be Tesla, Inc.'s third such factory, with the first two located in California and the newly operational factory in Shanghai. It is worth mentioning that Tesla, Inc.'s stock price has been continuously declining recently, dropping more than 30% from the beginning of the year. In addition to significantly reduced sales data in many regions, concerns have also arisen due to Elon Musk's foray into politics damaging the company's brand image, and high-level executive cash-outs. However, despite the controversy, Wall Street remains optimistic about Tesla, Inc. Morgan Stanley and Goldman Sachs Group, Inc. have released research reports stating that Tesla, Inc. will benefit from the theme of physical artificial intelligence. While facing short-term fundamental challenges, increased FSD revenue will improve long-term profitability. As of the time of writing, Tesla, Inc.'s stock price has fallen by 2.38% in pre-market trading to $272.45 on the US stock market, with a 52-week price range of $138.80 to $488.54.