Tesla has leased 325,000 square feet of space in Palo Alto, near its headquarters, multiple sources said. Despite the relocation of its headquarters to Austin, the company intends to increase its California operations by 50%, according to Elon Musk.
Tesla has secured a 325,000 square foot lease on 1501 Page Mill Road from Hewlett Packard, part of an office complex in Stanford Research Park, according to five sources familiar with the deal, Mercury News reported. The lease was secured by JLL’s Timothy Ogilvie, senior vice president, and Toss Vallentine, managing director, who worked on behalf of Hewlett Packard, reported The Registry. Douglas Sharpe, executive vice president at NAI Northern California, represented Tesla in the deal.
Tesla's lease covers about half of HP's remaining campus, which is just minutes from its current headquarters at 3500 Deer Creek Road. Plans for the new facility have not been disclosed. According to a property flyer from JLL, the building features efficient floor plates, ample natural light, an on-site cafeteria, and coffee bars. It also has a conference center as well as outdoor seating areas. Tesla's lease term is ten years, and the building will continue to be owned by Hewlett Packard with a land lease to the Stanford University Board of Regents.
Although Tesla is moving its headquarters to Austin, Texas, California still retains a large number of company operations, as well as highly qualified specialists. The manufacturer has an automobile manufacturing facility, a battery production line, and a plurality of research and development departments. Elon Musk personally said that Tesla intends to increase the number of operations in California by 50% during AGM. Thus, the transfer of the headquarters to another state is not the exit of the manufacturer from California. This would not make sense as Tesla seeks to expand its presence globally rather than relocating existing businesses to other locations as some have suggested.
© 2021, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
