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Tesla expands warehouse ahead of Model 3, signs largest industrial lease in area history

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Tesla has inked a deal to lease three warehouses totaling a massive 1.3 million square feet in the Oaks Logistics Center in Livermore, California, just 20 miles northeast of the Fremont factory. The deal is being billed as the largest industrial lease signed in San Francisco East Bay history.

The deal comes at a critical time for the Silicon Valley-based electric car company, as it prepares for Model 3 production and readies to face one of the largest growth phases in the company’s history.

WATCH: Elon Musk shares video of Model 3 ‘Release Candidate’ accelerating down a street

CEO Elon Musk has regularly expressed concerns about running out of space at the company’s factory in Fremont, California. By having a new Tesla Warehouse that’s roughly 25% the size of the factory, the company can expand manufacturing and logistical operations in support of high volume production of Model 3.

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The Oaks Logistic Center is a new facility that was constructed from 2014-2015 and is comprised of three separate warehouses ranging from 295,000 square feet to 634,000 square feet in size. Tesla signed a deal to lease two of the three warehouses last year, but will now take over the entire facility. The location sits strategically located just 20 miles northeast of the Fremont factory and in the direction of Tesla’s Gigafactory. As such, it could easily serve as a staging point for battery packs and other components coming into Fremont from Gigafactory 1.

New aerial photos of Gigafactory 1 taken on March 17, 2017

The new state-of-the-art Tesla Warehouse facility has easy access to Highway 84 and Interstate 580, the Port of Oakland and the Livermore Municipal Airport. The location is also just across town from the Lawrence Livermore National Laboratory which focuses on energy as one of the key areas of research.

In line with Tesla’s desire to minimize the manufacturing footprint for Tesla products, all three buildings in the new property are LEED Silver certified.

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A job posting for a Production Control Materials Analyst role at the Tesla Warehouse indicates that, “This position requires a blend of skills and experience that are specifically focused on the inventory management of several hundred manufacturing parts.” The individual will be responsible for “executing inventory control measures to ensure company minimizes stock holding and maximizes inventory systems” reads the job requirement.

Details for Tesla’s Warehouse are as follows, courtesy of BizJournals:

INDUSTRIAL – Tesla at Oaks Logistics Center

Location: 201 Discovery Drive,
801 Challenger St., and 800 Atlantis St., Livermore
Size: 1.3 million square feet
Tenant: Tesla
Landlord: Trammell Crow Co. and partner Bentall Kennedy
Developer brokers: Robert Ferraro and Blake Rasmussen of CBRE and Michael Lloyd of Colliers
Rent: $8.9 million per year reported

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Tesla Cybercab display highlights interior wizardry in the small two-seater

Photos and videos of the production Cybercab were shared in posts on social media platform X.

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Credit: Tesla Robotaxi/X

The Tesla Cybercab is currently on display at the U.S. Department of Transportation in Washington, D.C., and observations of the production vehicle are highlighting some of its notable design details. 

Photos and videos of the production Cybercab were shared in posts on social media platform X.

Observers of the Cybercab display unit noted that the two-seat Robotaxi provides unusually generous legroom for a vehicle of its size. Based on the vehicle’s video, the compact two-seater appears to offer more legroom than Tesla’s larger vehicles such as the Model Y, Model X, and Cybertruck.

The Cybercab’s layout allows Tesla to dedicate nearly the entire cabin to passengers. The vehicle is designed without a steering wheel or pedals, which helps maximize interior space.

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Footage from the display also highlights the Cybercab’s large center screen, which is positioned prominently in front of the passenger bench. The display appears intended to provide entertainment and ride information while the vehicle operates autonomously.

Images of the vehicle also show an additional camera integrated into the Cybercab’s C-pillar. The extra camera appears to expand the vehicle’s field of view, which would be useful as Tesla works toward fully unsupervised Full Self-Driving.

Tesla engineers have previously explained that the Cybercab was designed to be highly efficient both in manufacturing and in operation. Cybercab Lead Engineer Eric E. stated in 2024 that the Robotaxi would be built with roughly half the number of parts used in a Model 3 sedan.

“Two seats unlocks a lot of opportunity aerodynamically. It also means we cut the part count of Cybercab down by a substantial margin. We’re gonna be delivering a car that has roughly half the parts of Model 3 today,” the Tesla engineer said.

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The Tesla engineer also noted that the Cybercab’s cargo area can accommodate multiple golf bags, two carry-on suitcases, and two full-size checked bags. The trunk can also fit certain bicycles and a foldable wheelchair depending on size, which is quite impressive for a small car like the Cybercab.

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Elon Musk’s xAI wins permit for power plant supporting AI data centers

The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).

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Mississippi regulators have approved a permit allowing Elon Musk’s artificial intelligence company xAI to construct a natural gas power plant in Southaven. The facility is expected to support the company’s expanding AI infrastructure tied to its Colossus data center operations near Memphis.

The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).

According to the report, regulators “voted to approve the permit” of xAI subsidiary MZX Tech LLC to construct a power plant featuring 41 natural gas-burning turbines “after careful consideration of all public comments and community concerns.”

The Mississippi Department of Environmental Quality stated that the permit followed a regulatory review process that included public comments and community input. Jaricus Whitlock, air division chief for the MDEQ, stated that the project met all applicable environmental standards.

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“The proposed PSD permit in front of the board today not only meets all state and federal permitting regulations, but goes above and beyond what is required by law. MDEQ and the EPA agree that not a single person around our facilities will be exposed to unhealthy levels of air pollution,” Whitlock stated.

The planned facility will help provide electricity for xAI’s AI computing infrastructure in the Memphis region.

The Southaven project forms part of xAI’s efforts to scale computing capacity for its artificial intelligence systems.

The company currently operates two major data centers in Memphis, known as Colossus 1 and Colossus 2, which provide computing power for xAI’s Grok AI models. xAI is also planning to build another large data center in Southaven called Macrohardrr, which would be located in a warehouse previously used by GXO Logistics.

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Large-scale AI training requires substantial computing power and electricity, prompting technology companies to develop dedicated energy infrastructure for their data centers.

SpaceX President Gwynne Shotwell previously stated that xAI plans to develop 1.2 gigawatts of power capacity for its Memphis-area AI supercomputer site as part of the federal government’s Ratepayer Protection Pledge. The commitment was announced during an event with United States President Donald Trump.

“As part of today’s commitment, we will take extensive additional steps to continue to reduce the costs of electricity for our neighbors. xAI will therefore commit to develop 1.2 GW of power as our supercomputer’s primary power source. That will be for every additional data center as well. We will expand what is already the largest global Megapack power installation in the world,” Shotwell said.

“The installation will provide enough backup power to power the city of Memphis, and more than sufficient energy to power the town of Southaven, Mississippi where the data center resides. We will build new substations and invest in electrical infrastructure to provide stability to the area’s grid.”

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Tesla China teases Optimus robot’s human-looking next-gen hands

The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.

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Credit: Tesla China

A new teaser shared by Tesla’s China team appears to show a pair of unusually human-like hands for Optimus. 

The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.

As could be seen in the teaser image, the new version of Optimus’ hands features proportions and finger structures that look strikingly similar to those of a human hand. Their appearance suggests that they might have dexterity approaching that of a human hand.

If the image reflects a new generation of Optimus’ hands, it could indicate Tesla is continuing to refine one of the most critical components of its humanoid robot.

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Hands are widely viewed as one of the most difficult engineering challenges in robotics. For Optimus to perform complex real-world work, from manufacturing tasks to household activities, its hands would need to be the best in the industry.

Elon Musk has repeatedly described Optimus as Tesla’s most important long-term product. In posts on social media platform X, Musk has stated that Optimus could eventually become the first real-world Von Neumann machine.

In theory, a Von Neumann machine is a self-replicating system capable of building copies of itself using available materials. The concept was originally proposed by mathematician John von Neumann in the mid-20th century.

“Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet,” Musk wrote in a post on X.

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If Optimus is expected to carry out complex work autonomously in the future, high levels of dexterity will likely be essential. This makes the development of advanced robotic hands a key step towards Musk’s long-term expectations for the product.

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