Tesla quietly expands its presence in Silicon Valley with a new lease for a massive advanced manufacturing facility in Fremont, California. The 267,099-square-foot space, located in the Milmont Industrial complex developed by Hines, boasts state-of-the-art features ideal for high-tech production, such as heavy power capacity, high clear heights, and strong transit access.
While Tesla has not disclosed specific plans for the facility, CEO Elon Musk’s recent comments hint at a shift towards becoming a “physical AI company,” with humanoid robots like Optimus taking center stage. The company plans to phase out Model S and Model X production in Fremont in favor of ramping up production of Optimus V3, its first mass-production humanoid robot design. Tesla aims to produce one million robots annually in Fremont, with Musk touting Optimus as “the biggest product of all time.”
This latest lease is part of Tesla’s broader real estate strategy in the region, following the acquisition of a 108,000-square-foot AI-focused research and development facility near its Fremont factory. The company’s investments in Fremont underscore its commitment to advancing robotics and AI technology.
Despite challenges in the industrial real estate market, Fremont remains a key manufacturing hub in California, with Tesla as the city’s largest employer. With approximately 30,000 workers, Tesla continues to hire local engineers and AI specialists as it focuses on autonomy and robotics for its future growth.
As Tesla continues to expand its footprint in Silicon Valley, the company is positioning itself for a future dominated by advanced technology and innovation. The new manufacturing facility in Fremont represents a significant step towards realizing Tesla’s vision of becoming a leader in the AI and robotics space.