Elon Musk’s Tesla Doesn’t Shy Away From Bay Area Growth

Tesla is growing in the East Bay.

The Elon Musk-led electric vehicle maker is moving into another 108,000 square feet of research and development space near its factory in Fremont, the San Francisco Business Times reported. The firm will occupy the entire building at 45401 Research Avenue owned by Lincoln Property Company.

Tesla inked the lease late last year, making it the second-largest R&D lease of the fourth quarter, behind Figure AI’s deal for approximately 115,000 square feet in San Jose, according to the Business Times.

Tesla has not disclosed which unit of its business will occupy the Research Avenue building. The structure is designed for office and R&D capabilities.

Musk moved Tesla’s headquarters from Palo Alto to Texas in 2021 as part of the billionaire’s relocation of several of his companies’ operations to the Lone Star State. Tesla still maintains facilities across the Bay Area, including an engineering hub in Palo Alto, a 149,000-square-foot distribution center in Hayward and a 210,000-square-foot manufacturing plant in Fremont. The Fremont facility at 48401 Fremont Boulevard is approximately 3 miles south of its newest Fremont digs on Research Avenue.

The Bay Area has seen an influx of automotive engineering operations in recent years. Electric truck maker Rivian established its autonomous driving and core technology development in Palo Alto. General Motors has an artificial intelligence center in Mountain View and is reportedly looking for a larger Silicon Valley campus, according to the Business Times. Toyota’s software and autonomy unit is moving into a newly renovated property in Santa Clara.

Fremont remains a top destination for companies looking to grow their industrial operations. Investors have taken note; this month alone, two large-scale industrial properties in the East Bay city have traded hands. Prologis, which owns Tesla’s manufacturing plant on Fremont Boulevard, sold a 26-acre industrial site at 41777 Boyce Road for $70.1 million, and Morgan Stanley Investment Management acquired a two-building, 290,000-square-foot manufacturing facility at 44100 and 44200 Osgood Road from Angelo Gordon for $110.3 million.

— Chris Malone Méndez