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Tesla signs lease on massive Los Angeles facility near Silicon Beach

Tesla has reportedly signed a lease for a 131,000 square feet facility in Marina Del Rey, CA

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Tesla has reportedly signed a lease for a massive 131,000 square feet creative office facility that’s located in an area of Los Angeles best known as Silicon Beach.

Surrounded by the tech hub of Playa Vista where technology giants including Google, Facebook, Microsoft, among a slew of emerging startups that have made Southern California their home, and Venice Beach that has given birth to unicorns like Tinder, The Honest Company, and Snapchat; Tesla’s new location at 4755 Alla Road in Marina Del Rey gives the company presence in one of the hottest real estate markets on the westside.

But it’s not the location’s proximity to Silicon Beach that Tesla finds value in. Rather, the facility’s direct access to state highway 90 and its ample lot size that can support upwards of 400 parked vehicles, likely became the motivating factor for Tesla’s commitment to the $30 million and minimum seven year lease deal. The location could also serve as much needed support for Tesla’s Los Angeles Service Center on Centinela Ave. that has been on double-duty as a delivery center for Model S, Model X, and recent Model 3 deliveries.

Teslarati obtained the following photos of the massive facility on Monday, a day before the new tenant’s official move-in date.

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131,000 sqft. facility at 4755 Alla Rd. Marina Del Rey, CA [Teslarati]

Though Tesla did not provide comment on the reported lease agreement, a document filed on September 19, 2017 with the Los Angeles Department of City Planning identify Tesla as the company that requested a “coastal exemption permit” for an illuminated wall sign that reads “TESLA” for the building at 4755 Alla Road.

Requested Entitlement: NEW ILLUMINATED WALL SIGN FOR ”TESLA”

COASTAL EXEMPTION PERMIT FOR NEW WALL SIGN, 24 FEET 3 INCHES BY 2 FEET 3 INCHES, REVERSE CHANNEL HALO LIT ILLUMINATION, READING ”TESLA”. SIGN IS APPROXIMATELY 17 FEET FROM FINISHED GRADE.

Applicant: [ Company: TESLA]

The gated main entry to the facility boasts an expansive parking lot that’s large enough to hold at least one-hundred vehicles. In addition, the building has a secured subterranean parking garage with entry on the east end of the building along Alla Road. The north end of the building, where the loading docks reside, is adjacent to a community park that’s separated by a chain-link fence. Presumably, another hundred or more vehicles can park in the lot running the length of the building, as well as behind it.

According to the building description as seen in past property listings, the facility features a 22′ clear-height ceiling with exposed beams and ideal for creative office space use. It’s not clear what Tesla might be using this facility for, but one could argue that the facility would be best suited for use as a second service and delivery center in Los Angeles. This is especially the case as the company aims to support the thousands of new Model 3 vehicles being purchased and soon delivered to Southern Californians.

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Tesla looks to upgrade Matrix Headlights with new features

According to the update, Tesla will work on improving the headlights when coming into contact with highly reflective objects, including road signs, traffic signs, and street lights. Additionally, pixel-level dimming will happen in two stages, whereas it currently performs with just one, meaning on or off.

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Credit: @jojje167 on X

Tesla is looking to upgrade its Matrix Headlights, a unique and high-tech feature that is available on several of its vehicles. The headlights aim to maximize visibility for Tesla drivers while being considerate of oncoming traffic.

The Matrix Headlights Tesla offers utilize dimming of individual light pixels to ensure that visibility stays high for those behind the wheel, while also being considerate of other cars by decreasing the brightness in areas where other cars are traveling.

Here’s what they look like in action:

As you can see, the Matrix headlight system intentionally dims the area where oncoming cars would be impacted by high beams. This keeps visibility at a maximum for everyone on the road, including those who could be hit with bright lights in their eyes.

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There are still a handful of complaints from owners, however, but Tesla appears to be looking to resolve these with the coming updates in a Software Version that is currently labeled 2026.2.xxx. The coding was spotted by X user BERKANT:

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According to the update, Tesla will work on improving the headlights when coming into contact with highly reflective objects, including road signs, traffic signs, and street lights. Additionally, pixel-level dimming will happen in two stages, whereas it currently performs with just one, meaning on or off.

Finally, the new system will prevent the high beams from glaring back at the driver. The system is made to dim when it recognizes oncoming cars, but not necessarily objects that could produce glaring issues back at the driver.

Tesla’s revolutionary Matrix headlights are coming to the U.S.

This upgrade is software-focused, so there will not need to be any physical changes or upgrades made to Tesla vehicles that utilize the Matrix headlights currently.

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xAI’s Grok approved for Pentagon classified systems: report

Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations. 

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Credit: xAI

Elon Musk’s xAI has signed an agreement with the United States Department of Defense (DoD) to allow Grok to be used in classified military systems.

Previously, Anthropic’s Claude had been the only AI system approved for the most sensitive military work, but a dispute over usage safeguards has reportedly prompted the Pentagon to broaden its options, as noted in a report from Axios.

Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations. 

The publication reported that xAI agreed to the Pentagon’s requirement that its technology be usable for “all lawful purposes,” a standard Anthropic has reportedly resisted due to alleged ethical restrictions tied to mass surveillance and autonomous weapons use.

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Defense Secretary Pete Hegseth is scheduled to meet with Anthropic CEO Dario Amodei in what sources expect to be a tense meeting, with the publication hinting that the Pentagon could designate Anthropic a “supply chain risk” if the company does not lift its safeguards. 

Axios stated that replacing Claude fully might be technically challenging even if xAI or other alternative AI systems take its place. That being said, other AI systems are already in use by the DoD. 

Grok already operates in the Pentagon’s unclassified systems alongside Google’s Gemini and OpenAI’s ChatGPT. Google is reportedly close to an agreement that will result in Gemini being used for classified use, while OpenAI’s progress toward classified deployment is described as slower but still feasible. 

The publication noted that the Pentagon continues talks with several AI companies as it prepares for potential changes in classified AI sourcing.

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Elon Musk

Elon Musk denies Starlink’s price cuts are due to Amazon Kuiper

“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X.

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Credit: Starlink

Elon Musk has pushed back on claims that Starlink’s recent price reductions are tied to Amazon’s Kuiper project.

In a post on X, Musk responded directly to a report suggesting that Starlink was cutting prices and offering free hardware to partners ahead of a planned IPO and increased competition from Kuiper.

“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X. “The lower the cost, the more Starlink can be used by people who don’t have much money, especially in the developing world.”

The speculation originated from a post summarizing a report from The Information, which ran with the headline “SpaceX’s Starlink Makes Land Grab as Amazon Threat Looms.” The report stated that SpaceX is aggressively cutting prices and giving free hardware to distribution partners, which was interpreted as a reaction to Amazon’s Kuiper’s upcoming rollout and possible IPO.

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In a way, Musk’s comments could be quite accurate considering Starlink’s current scale. The constellation currently has more than 9,700 satellites in operation today, making it by far the largest satellite broadband network in operation. It has also managed to grow its user base to 10 million active customers across more than 150 countries worldwide. 

Amazon’s Kuiper, by comparison, has launched approximately 211 satellites to date, as per data from SatelliteMap.Space, some of which were launched by SpaceX’s Falcon 9 rocket. Starlink surpassed that number in early January 2020, during the early buildout of its first-generation network.

Lower pricing also aligns with Starlink’s broader expansion strategy. SpaceX continues to deploy satellites at a rapid pace using Falcon 9, and future launches aboard Starship are expected to significantly accelerate the constellation’s growth. A larger network improves capacity and global coverage, which can support a broader customer base.

In that context, price reductions can be viewed as a way to match expanding supply with growing demand. Musk’s companies have historically used aggressive pricing strategies to drive adoption at scale, particularly when vertical integration allows costs to decline over time.

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