Sawyer Merritt
@SawyerMerritt · Jun 3, 2026
Today, SpaceX received approval from Grimes County, Texas for huge tax breaks for the company's Terafab project.
The tax abatement would give SpaceX a full exemption on property taxes tied to the project.
County leaders have framed the Terafab proposal as a potentially
Elon Musk
@elonmusk
Something that perhaps isn’t clear is that, if this location works out (other locations are still in the running), SpaceX will still be paying an annual amount that increases tax revenue for Grimes County by ~25% and will be by far the biggest source of revenue for the county.
Taking into account taxes paid by SpaceX employees and contractors, Terafab will far exceed ALL revenue that Grimes County currently earns!
The reason SpaceX asked for this, which is standard practice for massive capital investments, is because Terafab will have a large number of extremely expensive machines for making chips. Property tax on these crazy money machines would put us at a serious competitive disadvantage relative to other chip fabs in the world.
12:47 AM · June 4, 2026 · 683.2K views
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