Tesla to Build 4M-Square-Foot Facility on Property Served by Gravel Road in Canby Industrial Park

Oil may have once carried the crude nickname of “Texas tea,” but that’s not the only association to the Lone Star State that appears likely to change thanks to the discovery of the massive reserve on Highway 99E.

Tesla Inc., which had previously unveiled plans to relocate its headquarters and the bulk of its manufacturing operations to a huge facility under construction near Austin, Texas, has announced it will instead move to Canby.

The company has optioned land in the Canby Pioneer Industrial Park to build a 4.3 million-square-foot assembly, paint, casting, stamping and body shop facility at a cost of $1.6 billion, according to documents filed with the Canby Planning Commission and state regulators.

Tesla Chief Executive Elon Musk said the company plans to start limited production of its Model Y mid-size SUV this year, and high-volume production next year.

Musk said he was drawn to the community because of its agricultural history, including once being a leading producer of industrial hemp, and small-town charm.

“I hear you guys have a ferry,” Musk said during a press conference at City Hall this week. “That’s pretty cool. I thought those were only in, like, Peter Pan and stuff.”

Construction for Tesla’s new factory, located on Mulino Road in the southeast corner of the industrial park, is expected to begin this summer.

The factory building is expected to be at least three-quarters of a mile long once completed, will operate 24-7 and will create some 10,000 new jobs, according to the company.

Traffic consultants hired by the company predict it will generate an estimated 50,000 new daily vehicle trips, the vast majority of them being large trucks loaded with vehicle parts, raw materials and finished cars.

The facility will be served by a rural, one-lane farm road built in 1910 primarily to carry horse and wagon traffic, with a gravel road in the back for emergency responders.

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