Tesla signs another substantial lease in Kyle, Texas

Tesla is once again expanding its real estate portfolio in the Austin area, with the the company now taking control of over 1 million square feet of industrial space in Kyle, a suburb just south of Giga Texas.

As we reported last year, Tesla was initially expected to lease three buildings for storage and light assembly at the Kyle/35 Logistics Park, located approximately 20 miles from downtown Austin. Those three buildings made up nearly 1 million square feet, making up the majority of the park’s 1.4 million square feet.

As it turns out Tesla wasn’t satisfied with that, and its presence in the park has grown even more.

Recent filings with the Texas Department of Licensing and Regulation, and uncovered by the Austin Business Journal, reveal that Tesla has now leased another 144,000 square feet, giving the automaker over 1 million square feet across buildings 1, 2, 3, and 5.

Houston-based Alliance Industrial Co., developer of the Kyle/35 Logistics Park, has been part of what’s framed as a $115 million capital investment, potentially creating around 1,500 jobs for the area.

Although the specifics of Tesla’s plans for the newly acquired space remain unclear, recent job postings for positions in Kyle hint at manufacturing and supply chain operations, particularly related to battery cell production and quality control.

Tesla’s Texas operations are not limited to Giga Texas and the new Kyle expansion. The company has also started construction of a lithium refining plant near Corpus Christi, and holds additional space in Hutto and San Antonio for what is also believed to be connected to its battery production efforts.

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