Tesla adds over 1 million square feet of warehouse space near the Fremont factory as it seeks to expand production plans
Tesla Motors Inc (NASDAQ:TSLA) has been significantly adding more space to its main manufacturing plant in Fremont, CA to expanding its operations. Since the unveiling of its first compact sedan, the Model 3, the company has decided to upgrade its production and expansion plans.
Silicon Valley Business Journal reported on Monday that Tesla recently leased two new building at Oaks Logistics Center in Livermore, which is just 20 miles away from the Fremont factory. The move increases the company’s total manufacturing or warehouse space by over 1 million square feet in the region.
The facilities cover 635,533 square feet and 367,734 square feet of space. Additionally, the automaker will likely lease another 294,000 square-foot of building. Although there is uncertainty regarding the number of jobs the facilities will create, it is expected to be used as a warehouse, rather than a manufacturing space. Tesla is likely paying roughly 57 cents per square foot on monthly basis.
The Fremont factory, which has production capacity of 500,000 vehicles per year, is already one of the world’s biggest buildings having 5.3 million square foot of production and office space. Yet the company has been leasing out more space near the plant. Last year, it leased the 500,000 square-foot of former Solyndra production building and 300,000 square-feet building on Kato Road. Not to forget, the company converted the Lathrop facility, leased in 2014, into a casting foundry.
Tesla must have chosen Livermore because it’s close to its main factory and provides access to workers from Center Valley. Additionally, the report comes just a month after the Model 3 unveiling, after which the company has been working to upgrade its production plan to ensure that the customers of the $35,000 vehicle do not have to wait a lot. It has already scooped 400,000 reservations, which can grow even more by the end of 2017 when Model 3’s deliveries will initiate.