Tesla enhances auto parts distribution with New York facility

Tesla enhances auto parts distribution with New York facility

August 9, 2023

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Tesla will lease a 927,000 distribution facility for automotive parts in Newburgh, New York, according to an emailed press release from Matrix Development Group.

The center will serve as the hub for Tesla’s East Coast vehicle parts distribution, according to a LinkedIn post from Orange County Partnership, a non-profit economic development agency. The electric vehicle manufacturer will commence operations at the two-building industrial property in October.

Tesla has been strengthening its supply chain, and recently invested $3.6 billion to expand its manufacturing footprint in Nevada. The investment includes a new battery plant and its first high-volume semi truck factory. Earlier this year, the EV maker also announced plans to invest $776 million to expand it EV factory in Austin, Texas.

“With the market for industrial space extremely tight, there are very few high-quality logistics facilities that can accommodate operations the size of Tesla’s, and the ability to obtain nearly a million square feet in a single building was a critical factor for them,” Matrix Development Group Partner Alec Taylor said in a statement.

The real estate and investment firm has a list of other retailers and logistics companies as clients including Amazon, Sony Corporation, Petco and others.

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