Tesla Keeps California Roots with Santa Monica Service Center Renewal
Despite relocating its corporate headquarters to Texas, Tesla has reaffirmed its commitment to California with a major lease renewal in Santa Monica, as reported by Commercial Observer. The electric vehicle manufacturer has signed a renewal for its 82,000-square-foot industrial facility located at 1100 Colorado Avenue, continuing operations at the site it has occupied since 2021.
The two-story building will remain home to one of Tesla’s service centers, underscoring the company’s enduring footprint in the region. The renewed lease, which takes effect in January 2026, was facilitated by Daum Commercial Real Estate Services, with Michael Collins and Dustin Hullinger representing the property owner, Thompson Properties. Xan Saks of Beta Agency represented Tesla in the transaction.
Tesla initially signed a five-year lease valued at $12 million for the property in 2021. The Santa Monica facility complements the company’s broader real estate footprint in the state, which includes service centers and a manufacturing plant in Fremont, still considered the largest automotive facility in North America.
Although Tesla CEO Elon Musk moved the company’s official headquarters from Palo Alto to Austin, Texas, in 2021, citing California’s pandemic restrictions and regulatory environment, Tesla’s activity in the Golden State remains substantial. The company continues to lease significant industrial space, including two of three buildings in Livermore, acquired by Westcore for more than $326 million.
Musk has also shifted other corporate operations to Texas, including the headquarters of SpaceX and X, formerly Twitter. Nevertheless, Tesla’s lease renewal in Santa Monica suggests that while its executive offices may have moved, California remains a key operational hub for one of the nation’s most valuable companies.
