According to an Electrek report quoting a reliable source familiar with the matter, Musk is set on bringing the next Tesla Gigafactory, or ‘Terafactory', to Austin, Texas, or at least close to the city.
Musk announced its search for a third factory back in March. "Scouting locations for Cybertruck Gigafactory. Will be central USA," he said in a tweet.
The factory could produce Tesla's electric pickup truck called the Cybertruck as well as company's new Model Y crossover electric vehicle.
Tesla's current US vehicle assembly factory is in Fremont, California, which employs 10,000 workers. The company has a second US factory in Reno, where it builds batteries for its vehicles.
US President Donald Trump last week backed the Tesla CEO in his fight with the local authorities in California as he reopened the electric car factory in Fremont against the state guidelines.
Defying the stay-at-home order in place, Musk reopened Tesla factory in Fremont, California, challenging the authorities to arrest him if he has defied the rules.
"Tesla is restarting production today against Alameda County rules. I will be on the line with everyone else. If anyone is arrested, I ask that it only be me," Musk tweeted earlier.
Tesla filed a lawsuit against Alameda County seeking injunctive relief, an effort to invalidate orders that have prevented the electric car maker from reopening.
The Tesla California plant was shut on March 23 under a six-county order in the San Francisco area, which has been extended through May 31.