When Elon Musk announced last week that Tesla would move its headquarters from Palo Alto, California to Austin, Texas, he also mentioned the EV maker would continue to expand in The Golden State.
Actually, Tesla’s CEO was not just saying that to avoid upsetting Californians. News surfaced that the EV maker recently agreed to lease office space from HP near its current headquarters in Palo Alto, California.
Bay Area real estate news provider The Registry reported Tesla has leased 325,000 square feet from HP at 1501 Page Mill Road, citing sources with knowledge of the leasing market in Palo Alto. The lease is expected to be for a 10-year period, and Tesla is taking over roughly half of HP’s campus, which once served as the tech giant’s global headquarters.
Gallery: 2021 Tesla Annual Meeting of Stockholders
The leased office space is within the Stanford Research Park, only minutes away from the Tesla’s existing offices that still house its headquarters. According to a person familiar with the matter cited by Reuters, Tesla does not have enough space for its current offices, which is why the company decided to secure an additional site.
Interestingly, Tesla’s new 325,000-square-foot office space makes up roughly 10% of the entire market available in Palo Alto, according to JLL’s Silicon Valley Q3 2021 office statistics.
Tesla has some 12,000 employees in the San Francisco Bay area, including 750 in Palo Alto, according to estimates by Silicon Valley Institute for Regional Studies. Upon announcing the HQ relocation, Musk did not say how many people would move to Texas.
However, he said that moving to Texas was due to lack of space at the Fremont factory and expensive housing prices in California. The executive said that Tesla would continue expanding activities in California, including boosting output for the Fremont factory by 50 percent and building a new Megafactory in northern California.