• Aug 18, 2009


Tesla has announced that it's pulling up stakes and moving its digs from San Carlos, CA to Palo Alto. The EV startup firm will take over a three building complex in the Stanford Research Park formerly occupied by Silicon Valley pioneers Hewlett-Packard and its spin-off Agilent Technologies. The buildings will be renovated to house Tesla's offices, engineering and research staff along with a new powertrain manufacturing facility. At first, the facility will have 350 employees but that may eventually grow to 650.

This is the second time that Tesla has planned to move from its original offices. A year ago, a similar plan to move to San Jose was canceled as the worldwide financial crisis took hold and funding became impossible. Now that Tesla has access to low-cost loans from the Department of Energy ATVM program, the new plan can move forward.

Tesla is still negotiating on another site somewhere in California that will house the assembly facility for the Model S.


[Source: Tesla]

press releae

August 18, 2009

Tesla to open power train facility in Palo Alto, California

Leading electric vehicle maker will also move corporate headquarters to Stanford Research Park in Palo Alto

PALO ALTO, Calif. – The City of Palo Alto and Tesla Motors announced today that Tesla will develop and manufacture electric vehicle components in a renovated building in the Stanford Research Park in Palo Alto.

Tesla, the only automaker that is already producing and selling highway-capable electric vehicles, will lease a 369,000-square-foot facility on a 23-acre parcel at 3500 Deer Creek Road. The facility will supply all-electric powertrain solutions to Tesla Motors vehicles and other automakers, greatly accelerating the availability of mass-market EVs.

The world's premier EV manufacturer will also move its corporate headquarters from San Carlos to this site. Roughly 350 employees will work in Palo Alto initially, with space for up to 650 people.

Tesla's lease of this three-building complex is a creative, adaptive reuse and modernization of a manufacturing facility formerly occupied by Hewlett-Packard and Agilent Technologies. The historic area is minutes away from Stanford's main campus and from the garage in Palo Alto where Bill Hewlett and Dave Packard built their original audio oscillator.

"Silicon Valley and the Stanford Research Park are synonymous with innovation and entrepreneurship," said Tesla CEO and Product Architect Elon Musk. "It's an ideal place for a new car company trying to rethink many aspects of the traditional automotive business."

"Our city is a leader in promoting sustainability and has a strong commitment to green technology. Therefore we're extremely pleased to welcome Tesla to Palo Alto," said James Keene, Palo Alto City Manager. "Stanford, its Research Park, and Palo Alto have always been at the forefront of new technological discoveries and inventions, as well as fostering practices and ideas that increase environmental sustainability. Tesla's move is another indicator that Palo Alto is the place to be for the green tech and alternative energy companies that will help solve the daunting global environmental challenges of the 21st century."

Tesla sells power train components to other automakers so they can get affordable EVs to customers faster. Tesla is already producing EV components for Germany's Daimler, maker of Mercedes. The company will build the highly anticipated electric version of the Smart city car using Tesla battery packs and chargers.

Tesla, which achieved overall corporate profitability in July thanks to the popularity of the Roadster sports car, expects to announce other powertrain deals in the upcoming months. Tesla has already delivered nearly 700 Roadsters to customers.

"Tesla is rapidly recruiting new employees, and this fabulous working environment and proximity to Stanford University will give us excellent access to top engineering talent," said JB Straubel, Tesla's Chief Technology Officer and leader of the powertrain group. Straubel received a bachelor's degree in energy systems engineering and a master's in energy engineering, both from Stanford.

Tesla is in site negotiations for an assembly plant for the all-electric Model S. The sedan will be produced at a separate assembly plant in California -- not at the Palo Alto site.

Tesla will renovate the Deer Creek Road facility to the highest environmental standards, incorporating sustainable building practices certified by the Leadership in Energy and Environmental Design program. Construction is expected to begin in early fall. Tesla is planning to relocate employees from its offices in San Carlos in several phases over the upcoming months.

Financing will come in part from loans from the U.S. Department of Energy. In June, Tesla received approval for about $465 million in low-interest loans to accelerate the production of affordable, fuel-efficient electric vehicles.

The loans are part of the Advanced Technology Vehicle Manufacturing (ATVM) Program, which provides incentives to new and established automakers to build more fuel-efficient vehicles. Created in 2007, the $25 billion ATVM aims to reduce America's dangerous dependence on foreign oil and create "green collar" jobs. The program is entirely unrelated to the stimulus package or the so-called "bailout" funds that General Motors and Chrysler have received.

About Tesla

Tesla Motors is the only automaker that is already manufacturing and selling highway-capable electric vehicles. Tesla, which achieved overall corporate profitability last month, has delivered nearly 700 Roadsters to customers so far. The company's goal is to produce increasingly affordable cars to mainstream buyers – relentlessly driving down the cost of EV technology. Tesla also sells patented powertrain components to other automakers.


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  • 8 Comments
      • 5 Years Ago
      A rep at the Santa Monica store indicated to me that Long Beach was being seriously looked at for Model S engineering and production.

      Don't know how reliable that info is.
      • 5 Years Ago
      Keep in mind... the cars are BUILT by Lotus in England. The only thing that happens in the US is the installation of the drivetrain. And they're looking at what? 100 cars a month? That's maybe 5 a day. You wouldn't need anything bigger than a small town muffler shop to handle that!
      • 5 Years Ago
      Hey, with nearly half billion $ our gov money, it makes sense to put an unproven manufacturer in a plant that has a floor space cost that equals midtown Manhattan.
      • 5 Years Ago
      Funny, I was just down there, at PARC for some meetings. Tesla's space in San Carlos is really small (for a car company) and all the surrounding buildings are leased.

      • 5 Years Ago
      Yeah, cause when I think of cheap property to do manufacturing, the Palo Alto hills is the first location that comes to my mind.
        • 5 Years Ago
        If you take into account the current real estate market, you might consider it a wise investment.
      • 5 Years Ago
      This would be a cool house.
      • 5 Years Ago
      They can take over the NUMMI plant from Toyota as they just announced they are pulling out production there.