News
Tesla signs lease on massive Los Angeles facility near Silicon Beach
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.
131,000 sqft. facility at 4755 Alla Rd. Marina Del Rey, CA [Teslarati]
-
- Tesla Marina Del Rey facility front entrance gate
-
- Tesla Marina Del Rey facility along Alla Rd.
-
- Tesla Marina Del Rey facility expansive front parking lot
-
- Artist rendering of
-
- Facility is located next to a public park with tennis courts
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.
-
- Artist rendering of the facility
-
- North end of the building with loading docks.
-
- North end of the building
-
- Side entrance along Alla Road leading to a subterranean garage.
-
- Subterranean parking for 58 vehicles.
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.
Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
SpaceX reportedly discussing merger with xAI ahead of blockbuster IPO
