Tesla Plans to Double Austin Robotaxi Fleet as Travis County Reviews Tax Rebate Deal

Tesla intends to double its robotaxi fleet in Austin by December, less than six months after launching the autonomous ride-hailing service in the city, CEO Elon Musk said this week. However, as the automaker advances its deployment efforts, Travis County authorities are examining whether Tesla is fulfilling its commitments under a significant tax incentive agreement.

Musk announced on social media that the Austin fleet is expected to approximately double in size next month, indicating a swift expansion of Tesla’s autonomous service. The company risks losing millions of dollars in reimbursements should it fail to fulfill the obligations outlined in its Travis County tax agreement.

County authorities initiated the compliance review after Tesla failed to submit sufficient documentation to demonstrate its commitment. They declined to identify which aspects of the agreement might be non-compliant. Still, they stated that they are reviewing "multiple data points submitted in the compliance report," according to county spokesperson Hector Nieto.

Commissioner Margaret Gomez stated that she intends to urge the staff to investigate whether Tesla is fulfilling its legal responsibilities vigorously. "Should they fail to fulfill their legally binding obligations, I will seek to explore all available legal options," she stated, emphasizing that the court must act swiftly "to safeguard the public’s tax revenue and their best interests."

Tesla did not promptly reply to inquiries for comment.

The county authorized the incentive package in 2020 to attract Tesla’s headquarters from California and to facilitate the development of its extensive gigafactory in southeastern Travis County. At that time, commissioners promoted the initiative as a driving force for economic growth in one of the county’s most economically disadvantaged ZIP codes. 

Commissioner Brigid Shea stated that the facility would generate employment opportunities for residents without college degrees, while Commissioner Jeff Travillion described the agreement as a transformative process.

Under the agreement, Tesla qualifies for a 70% property tax rebate on the initial $1.1 billion invested in the factory, with the possibility of increasing to 80% if investments surpass $2 billion. The rebate applies solely to the county segment of the property tax statement. Tesla is also required to compensate employees at a minimum of $15 per hour, adjust wages in accordance with inflation, and ensure that at least 50% of its gigafactory workforce resides in Travis County.

Although initial estimates suggested Tesla might save $14 million over the first decade, the county has not disbursed any rebate payments. The evaluation occurs amid community members' concerns regarding whether the agreement continues to serve the best interests of residents. During an August commissioners court session, speakers highlighted issues related to workplace safety and environmental violations, including approximately $57,000 in federal penalties issued in 2024 for worker safety and chemical exposure.

"Do we wish to support workers by advocating for safe working conditions and fair wages?" asked resident Christina DeStefano. Another resident, Ethan McBride, described the agreement as "legalized theft," asserting that the county should not provide "millions in tax incentives to billionaires and their corporations valued at over a trillion dollars."

Travis County also upholds comparable rebate agreements with Apple, Samsung, and HID Global. Nieto stated that compliance evaluations are a standard component of the process, and payments to other companies generally take place in the same year that their annual reports are filed.