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Tesla’s massive parts distribution center in Northern California is coming to life
Tesla’s massive facility in Northern California has continued its rise from the dusty ground in the city of Lathrop into an 870,000 square foot facility that is moving closer to becoming operational.
A recent aerial video of the Lathrop building, located 60 miles east of Tesla’s Fremont factory, shows the completion of the facility’s outer shell and glass installed on parts of the building. While the roof and overall footprint of the building remain relatively unchanged in the last couple of months, perhaps the most noticeable progress made since December is the paving of asphalt around the perimeter of the building. Previously, these areas had only been visible as leveled ground in the underlying dirt. Part of the assumption that this building will become a parts distribution center is based on this aspect – the numerous truck-sized loading bays denote shipping activity, and the lack of expansive space for vehicles to park (as opposed to the massive lots at Gigafactory 1) indicate a comparatively small workforce.
Job postings made by the Silicon Valley-based electric carmaker also call for various positions in Tesla’s “Parts Distribution Center” in Lathrop, CA.
“Tesla is looking for a motivated and experienced Supervisor for our highly dynamic parts distribution center in Lathrop, CA. This position will provide supervision of day-to-day operations including receiving, stocking, shipping and all transactions related to said activities. The Supervisor, Parts & Service Warehouse, will also ensure efficiency and accuracy of stocking and organizing parts inventory.” reads a job description for Supervisor, Parts Distribution Center.
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- Tesla’s Lathrop facility takes shape, major progress on asphalt parking and driving areas. | Credit: Troopr1023 (YouTube)
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- Tesla’s Lathrop facility takes shape, major progress on asphalt parking and driving areas. | Credit: Troopr1023 (YouTube)
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- Tesla’s Lathrop facility takes shape, major progress on asphalt parking and driving areas. | Credit: Troopr1023 (YouTube)
The upcoming parts distribution center bodes well for a company that has continued to struggle with scaling its service footprint to match the increasingly higher volume of vehicle sales and deliveries. With hundreds of thousands of Model 3 finding new owners, having a massive warehouse that can store inventory ensures faster lead times for the many Tesla Service Centers in need of parts. The end result is an overall better customer experience for Tesla owners, as parts are readily available for vehicle repairs. Having a hub located in a major corridor between Tesla’s Fremont factory and Gigafactory 1 in Sparks, Nevada also aids in streamlining supply chain logistics.
The new Lathrop distribution facility adds to Tesla’s notable presence in the city. The company already owns a nearby 500,000 square foot building which had previously served as a Chrysler part distribution center. As with other regions with a Tesla presence, having a large manufacturer in the area offering numerous employment opportunities is not the only benefit – other businesses are attracted to potential new real estate and consumer markets. This is something that was also noted by the city’s mayor, Sonny Dhaliwal, following the announcement of Tesla’s acquisition of the Chrysler facility. “Within hours we were getting phone calls from major newspapers across the country…We’re proud that they want to do business here in Lathrop, and that’s a good thing for the city – that means additional revenue and even more jobs,” Dhaliwal said in a press conference.
Watch the drone footage taken on January 27, 2019, of Tesla’s Lathrop facility below:
Lifestyle
Tesla makes the cut on California’s newest EV Rebate program
California just signed a $270 million EV rebate into law and it starts this summer.
California Governor Gavin Newsom signed SB 168 into law on Monday, July 13, 2026, creating a $270 million EV rebate program that delivers money directly at the dealership rather than as a tax credit applied months later. The program, called MyFirstEV, is funded equally by California’s state budget and participating automakers, with each contributing $135.5 million to make the math work.
The timing is directly tied to the loss of federal support when the $7,500 federal EV tax credit ended, removing the most significant consumer incentive that had driven EV adoption in the U.S. California, which accounts for roughly one-third of all EVs sold nationally, moved to fill that gap with a state-level replacement.
The rebate structure is straightforward. First-time EV buyers can receive $3,500 off any new battery-electric vehicle with an MSRP up to $50,000. Used EVs priced at $25,000 or below qualify for a $1,750 rebate. The credit is applied at the point of sale, which removes the friction of the old federal system where buyers had to wait for tax season to see the benefit. The program goes live later this summer, with the California Air Resources Board expected to release full participation details next month.
California hits Tesla Cybercab and Robotaxi driverless cars with new law
For Tesla buyers, the implications are mixed. The Tesla Model 3 RWD at $42,490 and the Model 3 Long Range at $47,490 both fall under the $50,000 cap and would qualify for the full $3,500 rebate for first-time buyers. The Model Y, which starts at $44,990 after Tesla’s recent price adjustment, also qualifies. The Model X, Model S, and Cybertruck all exceed the cap and receive no benefit. As Teslarati has reported, the program also includes a carve-out exempting California-based automakers like Rivian and Lucid from the price cap entirely, a provision that puts Tesla at a disadvantage since it relocated its headquarters to Texas in 2021.
Other qualifying vehicles include the Chevrolet Equinox EV, Ford Mustang Mach-E, Hyundai Ioniq 5, Kia EV6, and Volkswagen ID.4.
The Tesla Semi is entering a new Pilot Program with Paper Transport, LLC (PTI), a Wisconsin-based transportation provider. The company will test the Semi’s Long Range configuration through “dedicated operations within the Chicago market.”
Chicago presents an interesting challenge for the Semi, as it will be a colder-weather climate that will test the Semi’s ability to operate in lower temperatures and in potentially large accumulations of snow. This is something Tesla has been testing with the Semi in Alaska and even in Northern California during the colder months, but Chicago will present a truly tough midwestern winter.
Tesla Semi spotted on journey home after winter performance testing
PTI says it is using the Semi to evaluate its strategy of reducing transportation emissions while maintaining performance, reliability, and cost efficiency. These are major arguments for the Semi being introduced into new fleets.
CEO of PTI Tyler Ellison said:
“PTI has been a leader in sustainable transportation solutions for over 15 years. We take a consultative approach to helping customers identify and implement the right transportation solution for their network. Our partnership with Tesla expands our portfolio alongside renewable natural gas and intermodal, giving customers more ways to reduce Scope 3 emissions without compromising service or economics.”
PTI is far from the first company to adopt the Semi within a fleet, as Tesla entered strategic agreements with PepsiCo. and its subsidiary Frito-Lay for a Pilot Program that extended throughout the California region.
Tesla has let companies like those utilize the Semi to determine whether it would be suitable for their operations. Additionally, Tesla gets valuable information regarding the Semi’s performance, knowing what to improve and what is ideal for companies that will utilize the all-electric truck for regional and nationwide logistics.
PTI plans to utilize the Long Range configuration, which is priced at $290,000 and features a range of approximately 500 miles, a three-motor powertrain, up to 800 kW of drive power, and consumption of just 1.7 kWh per mile.
Tesla Semi pricing revealed after company uncovers trim levels
VP of Maintenance at PTI, Bryan Ellen, added:
“We are excited to partner with Tesla, leveraging their ever-evolving technology. We are bullish in our estimation of the parallels available between our dedicated model and the efficiency of their fully electric Class 8 tractor. We anticipate a growing synergy between our businesses as we work to facilitate this sustainable solution for our customers.”
PTI has logged more than 87 million miles using sources like compressed and renewable gas, but now is looking to take it a step further with fully electric operations.
Tesla revealed on Monday that it is building a new autonomous vehicle at Gigafactory Texas, its plant just outside of the City of Austin. This particular vehicle will be geared toward those who are in need of a wheelchair-accessible car that would require no human driver for operation.
According to a new report from Wired, Tesla’s Senior Policy Advisor, India Herdman, told members of the Washington D.C. City Council on Monday:
“We are in development for a purpose-built, wheelchair-accessible autonomous vehicle. We know that paratransit can be very difficult, and people who are confined to wheelchairs permanently should still be able to move around freely, so that is an active product being built by Tesla in Texas.”
This builds upon what CEO Elon Musk said last year on X, which confirmed the company was working on accessible rides within its Robotaxi platform, which currently is confined to the Model Y.
Absolutely
— Elon Musk (@elonmusk) September 19, 2025
Tesla is also developing the Cybercab, which started employee rides last week. However, this vehicle is not necessarily geared toward wheelchair accessibility.
That leaves a major gap in the autonomous ride-sharing program that Tesla is attempting to build; the company has been pretty clear that it does not want to complicate its manufacturing lines by bringing in a wide array of body styles.
However, it seems necessary to have something larger that could help transport people to appointments when they cannot drive. For wheelchair accessibility, the Robovan, which was unveiled at the “We, Robot” event in October 2024, seems to be the most ideal solution:
Herdman did not indicate whether she was referring to the Robovan or if Tesla is building yet another body style that is geared toward full autonomy but also caters to the handicapped.
Tesla might need to develop something specifically for the handicapped in order to align with the Americans with Disabilities Act, which prevents discrimination against people with disabilities in transportation services. Uber was hit with a lawsuit late last year for “refusing to reasonably modify its policies, practices, or procedures where necessary to avoid discriminating against riders with disabilities.”
Tesla would obviously like to avoid this.
It will be interesting to see what Tesla will do with this project, and whether it will introduce something new to the market or just continue with the Robovan.
Tesla makes the cut on California’s newest EV Rebate program
Tesla Semi enters new Pilot Program with interesting challenge
