Tesla has expanded its engineering and innovation presence in California’s East Bay, securing a 108,000-square-foot lease close to its Fremont vehicle assembly plant, according to a report by Silicon Valley Business Journals.
Tesla will occupy the entire building at 45401 Research Ave., just minutes from its long-established Fremont factory. Property listings show the site includes more than 45,000 square feet of two-storey office space and about 62,000 square feet of warehouse and light manufacturing space, making it suitable for a mix of engineering, research and specialized testing activities.
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The lease ranks among the largest research-and-development real estate deals in the region late last year, second only to a roughly 115,000-square-foot agreement signed by robotics company Figure AI in San Jose, the report said.
Tesla has not disclosed which internal teams will move into the facility. However, the layout is designed for advanced R&D and office use, suggesting it could support work in areas such as vehicle engineering, software development and testing tied to autonomy and artificial intelligence.
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The expansion comes as Tesla continues to invest heavily in Full Self-Driving software, autonomous vehicle systems, robotaxi development and humanoid robotics, all of which require high-power computing infrastructure and close collaboration with engineering talent. Proximity to Silicon Valley provides access to a deep pool of specialists in AI, semiconductors and robotics.
Tesla’s move reflects a broader trend among automakers and mobility companies strengthening their technology presence in Northern California. Rivian has made Palo Alto a central hub for autonomy and core technology development, while General Motors operates an AI-focused center in Mountain View and has signaled plans to expand its Silicon Valley footprint. Toyota has also been consolidating software and autonomy teams into upgraded facilities in Santa Clara.
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Tesla’s latest lease underscores the company’s continued emphasis on in-house innovation as it positions itself not only as an automaker but also as a developer of advanced AI-driven systems.