Tesla CEO Elon Musk. Photo credit: Nvidia Corporation, under Creative Commons license

As indicated by a document filed with the Texas comptroller’s office, electric car maker Tesla is seeking up to $68 million in tax incentives from a school district in the state of Texas to build a factory that’ll produce Model Y vehicles as well as its recently unveiled Cybertruck pickup. The application was filed with the Del Valle School District, which has agreed to consider Tesla’s request. Under permitted laws, school districts in Texas are allowed to give property tax breaks for economic development projects, and Tesla is apparently requesting for that.

In return for the requested tax break, Tesla has committed to building a 4 to 5 million-square-foot factory that would provide more than 5,000 jobs in Texas. Out of that number, 25 of those workers categorized as “qualifying jobs” would be paid a minimum of $74,050. The location of the proposed factory is a collection of parcels that add up to 2,100 acres of land in the city of Austin, Texas. Tesla hasn’t yet acquired the land but already has an option to do so. The imminent purchase of the land is apparently dependent on Tesla securing the requested incentives.

The tax break request notably comes after Tesla CEO Elon Musk threatened to move the company’s headquarters outside the state of California. The threat was seemingly made in response to factory-opening restrictions that Tesla faced as a result of the coronavirus pandemic.