Tesla’s Service and Delivery Center in Etobicoke could eventually be torn down to make way for a massive high-rise redevelopment, according to a newly filed proposal. While the plan would see the site razed even though it only opened less than two years ago, the reality is that any change to the site is still likely years away, even if city approvals move forward.
The property at 5500 Dundas Street West, which Tesla began occupying in 2023 and officially opened to the public in February 2024, is now the subject of a major redevelopment application from landowner First Capital REIT. The proposal calls for the complete demolition of the existing Tesla facility and its surrounding surface parking lots, replacing them with a block-long residential and retail complex. (via BlogTO)
If approved, the redevelopment would include two mid-rise towers of 16 and 14 storeys, reaching heights of 57.1 and 63.3 metres, designed by Toronto-based architecture firm Superkül. The project would introduce 560 new residential units to the area, marking one of the largest intensification efforts along this stretch of Dundas Street West.
However, it’s important to put the timing into perspective considering the project is still just a proposal. Toronto’s planning and approvals process for projects of this size typically stretches across multiple years, and large-scale redevelopments in the area have already faced delays. A similar plan at nearby Cloverdale Mall, for example, was recently shelved due to a cooling condo market. Even if the proposal receives initial approvals, construction won’t begin any time soon.
For Tesla, the Etobicoke location is not just another Service and Delivery Center. Since September 2024, Tesla has centralized almost all GTA deliveries at the Dundas Street location. Model 3 and Model Y deliveries from Oakville, Vaughan, Brampton, Kitchener, and Toronto were all shifted to Etobicoke as part of a cost-cutting move to consolidate staff, vehicle storage, and logistics in one place. Only lower-volume vehicles like the Model S, Model X, and Cybertruck are still delivered elsewhere.
That shift has made 5500 Dundas Street West one of Tesla’s busiest locations in Canada — often overwhelmed on weekends with customers picking up vehicles, waiting hours for delivery, or dropping off cars for service.
For now, owners in the region shouldn’t panic. Even if the proposal moves ahead, the Etobicoke Tesla site is here to stay for the foreseeable future — and with how critical it is to Tesla’s Ontario operations, any eventual relocation would require a carefully planned replacement, not a sudden shutdown.
