Tesla has bought a parcel of land adjacent to its Fremont factory, the Silicon Valley Business Journal reported. The 35-acre site includes a disused test track that was built by the GM/Toyota joint venture that used to own the property.
Tesla bought the land from the Union Pacific Railroad for an undisclosed price. “The land is attached to the Tesla factory property,” Tesla spokeswoman Shanna Hendriks told the Journal. “We will use it as we expand our use of the facilities.”
City officials were pleased at the news. “They’re one of our key anchor tenants for Fremont and are the poster child for advanced manufacturing,” said Kelly Kline, the city’s economic development director. “This site obviously is of key importance to their operations, being that it houses the test track.”
“It’s a really good idea for Tesla to take over the test track,” said Theodore O’Neill, an analyst with Litchfield Hills Research. “Having a big test track will improve the ability of engineers to work out the kinks in new vehicles.”
Colin Rusch, an analyst with Northland Capital Markets, told the Silicon Valley Business Journal that he’s “very bullish” on the company. “We believe Tesla has demonstrated its ability to manufacture vehicles in an efficient manner. With additional investment, its current facility could potentially accommodate a run rate of as many as 500,000 vehicles a year.”
Sources: Silicon Valley Business Journal, Green Car Reports