The Del Valle ISD school board approved an economic incentives agreement with Tesla, which has proposed to build a $1.1 billion Gigafactory in Southeast Travis County, at a meeting on July 9.

Under the 10-year deal, Tesla will pay property taxes on only 20% of the factory's assessed value—a savings of around $50 million—to the school district. In exchange, the electric carmaker has promised 5,000 new jobs, most of which are middle-skill positions that do not require a college degree, and a fleet of workforce development programs.

Construction could begin as soon as this fall, according to Tesla's application for the incentives agreement.

Tesla is also negotiating a separate economic incentives agreement with Travis County, whose Commissioners Court is scheduled to vote on whether to approve the terms this Tuesday.

A Tesla representative said June 23 that Austin is at the top of its list but that economic incentives are required "to make the economics of a factory work."

Tulsa is also courting Tesla and hopes to be home to its next factory, which will produce its latest model, the Cybertruck pickup, as well as a mid-size SUV called the Model Y.