Tesla plans to rent office space from HP to expand its presence in California


Tesla has agreed to rent office space from HP near the electric car maker’s current headquarters in Palo Alto, California, a person familiar with the matter told Reuters.

Tesla’s expansion in Palo Alto even came after CEO Elon Musk announced last week that the company was moving its headquarters from Palo Alto, California to Austin, Texas.

The person said Tesla didn’t have enough space for its current offices, prompting the company to secure an additional location.

Previously, real estate news company the Registry had reported that Tesla had rented 325,000 square feet at 1501 Page Mill Road from HP, citing sources with knowledge of the leasing market.

Musk said Tesla will continue to expand operations in California, including production of its Fremont auto plant and Nevada battery plant by 50 percent.

Musk, who said the Texas move was due to a lack of space at the Fremont factory and high property prices in California, did not provide any information on how many people would be moving to Texas.

According to estimates by the Silicon Valley Institute for Regional Studies, Tesla has 12,000 employees in the San Francisco Bay Area, 750 of them in Palo Alto.

Neither Tesla nor HP were immediately available for comment. HP, a Silicon Valley pioneer, is headquartered in Palo Alto, but its spin-off Hewlett Packard Enterprise has relocated its headquarters to Texas.

© Thomson Reuters 2021


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