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Tesla secured additional capacity in Fremont, California, as it begins its pivot from producing electric vehicles in the East Bay to making the Optimus humanoid robot.
Tesla leased the entirety of a 267K SF research and development space at 49000 Milmont Drive in Fremont’s advanced manufacturing and tech-centric Warm Springs District, the Silicon Valley Business Journal reported.
Along with 108K SF at 45401 Research Ave., a short distance from the Milmont Drive facility, Tesla has leased 375K SF in Fremont so far this year. The company hasn’t disclosed its plans for the spaces and didn’t respond to a request for comment.
Tesla CEO Elon Musk said during the company’s fourth-quarter earnings call in January that the electric-vehicle maker would sunset production of its Model X and Model S vehicles and retool a portion of its 6.2M SF factory on Fremont Boulevard to produce the Optimus robot, with the eventual goal of making 1 million units per year.
A statement from the city of Fremont says that as Tesla adapts for Optimus production, it will also continue producing its Model 3 and Model Y vehicles in Fremont and that its headcount in the city could increase.
Tesla's newest property is part of a 14-acre infill site and was completed last year.
Cushman & Wakefield lists the property at 49000 Milmont Drive for sale, noting a long-term lease with a high-credit tenant.
The Fremont area has a relatively low supply of R&D space compared to the rest of Silicon Valley, with about 6.7M SF, according to CBRE's Q4 report. At the end of 2025, the R&D market in the area carried a 17.9% vacancy rate and average asking rents of $1.99 per SF, compared to $3.80 per SF for the entire Bay Area.
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