Tesla is expanding its footprint in Fremont, California, with a lease of a 267,099-square-foot advanced manufacturing facility built by Hines and Oaktree Capital.
This is the second large building lease that Tesla has secured in 2026. Last month, the company secured a lease for a 108,000-square-foot research and development facility near its existing Fremont factory.
Now, rumours are swirling about what Tesla is going to do with all this manufacturing space, and one thing is for sure: the company is planning something big.
A few months ago, Tesla confirmed it plans to wind down production of the Model X and Model S at its Fremont factory in favour of its Optimus program. So, if that holds true, we can assume the research and development facility near Fremont will become Optimus HQ, with developers and engineers based there.
That leaves this new space, which could be the new home for luxury vehicle production. A smaller production facility that focuses on high end EVs such as the Roadster with built-in research and development might be a smart move as the company refocuses its California-based production lines.
Tesla, for its part, has not commented on its plans for the new spaces, but these new buildings could mean an expanded manufacturing footprint where Tesla first broke into the mainstream.
