Tesla Motors Inc To Lease Solyndra Building

Tesla Motors leases a 500,000 square feet facility next to its Palo Alto plant

Tesla Motors Inc. (NASDAQ:TSLA) is expanding its manufacturing footprint even further after the much-anticipated Gigafactory announcement. Tesla has leased a manufacturing facility in Fremont, California, as reported by Silicon Valley Business Journal.

The Palo Alto-based luxury Electric Vehicle (EV) maker confirmed to Silicon Valley Business Journal, via an email, to have finalized the deal. The financial details of the deal haven’t been disclosed yet, but reports cite the newly leased site as massive— standing at more than 500,000 square feet.

The factory site is quite close to Tesla’s Fremont assembly plant in Page Technology Center located at 901 Page Avenue, deemed to be the largest such factory in California since the company bought NUMMI plant in 2010. Tesla spokesperson confirmed saying: “901 Page, located conveniently down the road from the Tesla Factory, gives us the space to expand our manufacturing and build more engineering labs as we build up production.”However, the production capacity of the new factory hasn’t been made public. It can safely be speculated that the new addition to Tesla’s real estate will definitely contribute positively toward the EV maker’s goal of delivering 55,000 units of gull-winged Sports Utility Vehicle (SUV), the Model X in 2015 and 82,500 units in 2016.

Global Research Equities Co-founder and senior analyst Trip Chowdhry  maintains that the extra factory space for the EV maker was an essential need to free up its swamped manufacturing unit. Mr. Chowdhry claims that Tesla’s engineering operations in Deer Creek can also be shifted to the new facility, which is highly expected to rectify the parking problem currently faced at the Deer Creek unit.