Tesla leases new land as part of its California expansion – for $ 1 a year


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True to CEO Elon Musk’s word, Tesla is expanding its presence in California despite the official relocation of its headquarters to Texas. And in the midst of that California expansion, Tesla leased nine acres of land to support its operations at Lathrop, all for a very reasonable price of $ 1 per year.

As stated in a Mantéca Bulletin report, Tesla has deliberately expanded its footprint in Lathrop since the company’s arrival in the city in 2014. Meanwhile, Tesla hoped to convert a former Mopar distribution center into an auto parts manufacturing plant. Tesla has since expanded its business to Lathrop, with the construction of an 870,000 square foot warehouse in the city. More recently, Tesla also launched an upcoming “Megafactory” for its flagship battery storage unit, the Megapack.

With Tesla on the verge of employing around 1,500 people working in two shifts in the ‘Megafactory’, the need for a space where facility employees could park their vehicles while they are at work has grown. feel. With that in mind, Lathrop city council voted unanimously last week to lease nine acres of city-owned land from the electric vehicle maker. Tesla would have to pay for all the upgrades, infrastructure, and upkeep of the new land, but that probably wouldn’t be a problem.

Indeed, the town of Lathrop chose to lease the nine acres of land to Tesla for just one dollar a year. Not a dollar per acre per year. A dollar for the the whole field per year.

While the dollar deal for the next “Megafactory” parking space may seem quite shocking to some, the city wrote in a staff report prepared for the council that Tesla’s presence in the city translates to more. jobs and tax revenues. And these would probably be fairly obvious once the “Megafactory” begins operations.

“Tesla’s presence in Lathrop promotes growth across the city by creating jobs and tax revenue. The 700 D’Arcy manufacturing plant will create approximately 1,500 jobs in the city as well as additional tax revenue.

Tesla and the City of Lathrop have worked together for years. Even before the company finished its huge warehouse, the electric vehicle maker used several sites in the city to store the vehicles produced at the Fremont plant. And given Elon Musk’s promise to expand Tesla’s presence in California despite the company’s decision to move its headquarters to Texas, Tesla’s expansion from Lathrop may just be beginning.

* Quotes courtesy of the Manteca Bulletin.

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Tesla leases new land as part of its California expansion – for $ 1 a year






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