Tesla is adding yet another piece to its growing engineering and innovation footprint in California’s East Bay. The latest addition is a 108,000 square-foot lease near its Fremont factory.
According to a new report from Silicon Valley Business Journals, Tesla will take over the entire building at 45401 Research Ave., located just minutes from its longtime Fremont factory. The most recent listing indicates the building includes over 45,000 square feet of 2-storey office space and nearly 62,000 square feet of warehouse and manufacturing space.
The deal ranks as one of the largest R&D leases in the region late last year, trailing only a roughly 115,000-square-foot agreement by Figure AI in San Jose.
While Tesla has not confirmed which internal team will occupy the site, the space is configured for office and advanced R&D work—making it well-suited to engineering, software development, and specialized testing.
The expansion comes as Tesla continues to pour resources into autonomy, AI, and next-generation vehicle intelligence. From Full Self-Driving (FSD) development to long-term ambitions around robotaxis and humanoid robotics, these efforts demand high-power facilities and close proximity to Silicon Valley’s large pool of AI talent, chip designers, and robotics expertise.
Tesla is far from alone. Rivian has established Palo Alto as a key hub for autonomy and core technology, while General Motors operates an AI center of excellence in Mountain View and is actively seeking a larger Silicon Valley campus. Toyota is also relocating its software and autonomy teams into upgraded facilities in Santa Clara.
