Tesla is expanding its footprint in Northern California, snapping up a sizable new research-and-development space just steps away from one of its most important manufacturing hubs. According to a new report from the Silicon Valley Business Journal, Tesla has leased an entire 108,000-square-foot building near its Fremont factory, marking one of the largest R&D deals in the region late last year.
The new facility is located at 45401 Research Ave., close to Tesla’s sprawling Fremont plant, and represents the second-largest R&D lease signed in the fourth quarter of 2025. Real estate firm Colliers, which brokered the deal, says the move reflects growing demand for specialized engineering and AI-focused space from mature tech companies — Tesla very much included.
While Tesla hasn’t disclosed which internal team will occupy the building, the expansion comes as the company continues to double down on autonomy and artificial intelligence. With ambitions ranging from large-scale robotaxi fleets to increasingly software-defined vehicles, Tesla needs more room for engineers working on Full Self-Driving, AI training infrastructure, and next-generation vehicle platforms…