Tesla is quietly deepening its roots in Silicon Valley, even as it publicly positions itself as a Texas-based company and increasingly pitches investors on a future dominated by robots and artificial intelligence. According to a new report from CoStar, Tesla has finalized a lease for a massive 267,099-square-foot advanced manufacturing facility in Fremont, California, just steps away from its flagship factory.
The newly leased space, known as Milmont Industrial, was developed by Hines and completed only last year. The property sits on a 14-acre site in Fremont’s Advanced Manufacturing Row and features modern specs tailored for high-tech production, including heavy power capacity, high clear heights, ample loading docks, and strong transit access. The facility’s owners, Hines and Oaktree Capital Management, have already listed the fully leased property for sale, underscoring continued demand for premium industrial space tied to AI-driven manufacturing.
Tesla hasn’t confirmed exactly how it plans to use the new facility, but the timing is notable. CEO Elon Musk said during the company’s most recent earnings call that it is transitioning “from a hardware-centric business to a physical AI company,” with humanoid robots like Optimus playing a central role. Tesla has also confirmed plans to phase out Model S and Model X production in Fremont and ramp up Optimus instead…