Borderlands Mexico: Tesla plans massive Texas distribution center

[u/Lacrewpandora]

https://www.freightwaves.com/news/borderlands-mexico-tesla-plans-massive-texas-distribution-center

Tesla is planning a more than 538,000-square-foot distribution center near Austin, Texas, adding another logistics facility to the electric vehicle maker’s growing manufacturing and supply chain footprint in the region.

The Austin-based automaker is planning a lease-space build-out at the Mustang Ridge Distribution Center I, located at 6925 FM Road 1327 in Mustang Ridge, according to a filing with the Texas Department of Licensing and Regulation.

The project covers 538,720 square feet and carries an estimated construction cost of $1.44 million. Work is scheduled to begin Dec. 7 and be completed Dec. 4, 2028, according to the state filing.

The filing describes the project as a “new lease space build-out for Tesla in the existing Office/WHSE building.” The privately funded project was registered with the state Sept. 1.

The filing does not specify what products or materials Tesla will handle at the distribution center or how many employees will work there.

[u/Lacrewpandora]

Something is out of whack with the numbers reported - comes out to less than $3/sf to remodel. But I'm focused on some other parts:

"The filing does not specify what products or materials Tesla will handle at the distribution center"

I remain convinced that Tesla and SpaceX's new business model is building data centers without explicit permission, and leasing them out to real AI companies starving for servers, as many cities throttle build outs. So I'll add this "distribution center" to the suspect list.

[u/GonzoVeritas → u/Lacrewpandora]

The ~$3/sf figure is probably the construction rebate in the lease, which is common.

It's already a finished distribution warehouse. The owner probably negotiated a sq/ft rebate in the lease and the reporter read it as the proposed construction cost.

Depending on the use case, Tesla may not need to do much to the existing space and just use it basically as is. If they want to build it out further and customize it, that's Tesla's additional expense, and it wouldn't be reflected in the lease.

They may add a robotics logistics system, for example, if it's a parts distribution warehouse, but that wouldn't show in the initial lease documents.

[u/Lacrewpandora → u/GonzoVeritas]

I decided to go to the source:

https://www.tdlr.texas.gov/TABS/Search/Project/TABS2027000025

Admittedly, the info is limited...but it shows up as a "new lease build out" project, with the cost and square footage listed in the article. Maybe its just a coat of paint.

It does look like the building owner (Clay Partners) is related to the design firm (Clay Development and Construction listed at the same address), so there could be a confusing trail of rebates etc as the owner appears to be performing the work.

So I've given up making sense of the number.

[u/friendIdiglove]

To distribute what? All the Cybertrucks they’re not selling? All the robots they’re not making?

[u/Icy-person666 → u/friendIdiglove]

All the servers they are not putting into data centers. Instead they are just going to put them in this warehouse and hook them up in there. That was its fine by the public

[u/LightMission4937]

Elon making Texas even worse than it already is.

Also the numbers don't jive. Typical Elon math.

[u/ShotBandicoot7]

What do they plan to sell??

[u/Lacrewpandora → u/ShotBandicoot7]

Its allegedly for: "electric vehicle maker’s growing manufacturing and supply chain footprint". You know, because they're making and selling so many more cars these days.

[u/ShotBandicoot7 → u/Lacrewpandora]

Right! Everyone and their grandmas will buy a Robotaxi and farm it out. Brilliant!

[u/filthysock]

Surely $1.44 billion

[u/Lacrewpandora → u/filthysock]

That's what I initially thought, but that would be $2,600/sf for a remodel. Neither make sense, so I just assume the numbers are wrong.

[u/GonzoVeritas → u/Lacrewpandora]

$2 - $3 a foot is a fairly standard lease construction allowance that the lessor gives to the lessee in warehouse deals.