Tesla is continuing its ambitious Texas expansion, signing a major lease for a new 293,000 square foot facility in Austin—further solidifying the region as a central hub for the company’s rapidly growing operations. The lease, first reported by the Austin Business Journal citing sources with knowledge of the deal, marks yet another move by Tesla to grow its real estate portfolio in Texas.
The new facility is located at the Austin Hills Commerce Center at 11801 Decker Lane, about 10 km (6 miles) from Giga Texas. It sits within Building 1 of the 135 acre industrial park currently under development by the Sansone Group, a St. Louis-based real estate firm.
Tesla officially signed the lease on May 14, with occupancy set to begin on June 1. There has been no word yet on what the company will use the facility for.
This latest deal adds to the more than 11 million square feet of space Tesla already operates in the greater Austin area. In addition to the main 2,500-acre Giga Texas factory in southeast Austin, the company also holds facilities in other Texas cities such as Kyle, Taylor, Hutto, and Houston.
The Texas market has become the cornerstone for Tesla after its corporate move out of California as it centralizes manufacturing, software development, and service infrastructure in the Lone Star State. Giga Texas handles production of the Model Y, the Cybertruck, and battery components, and is expected to play a central role in future autonomous vehicle assembly and deployment, as well as Tesla’s humanoid robot, Optimus.
The new lease comes as the company plans to launch its paid robotaxi service in Austin in just a few weeks, marking a milestone in its autonomous vehicle efforts. Tesla has already begun driverless testing in the city using Model Y vehicles, with the company reportedly targeting June 12 as the official launch date of the service, which will initially be limited to certain parts of the city.
