Tesla plans 538,000-square-foot Texas distribution hub

Tesla is planning to expand its logistics footprint near Austin, Texas, with a 538,720-square-foot distribution center. The project involves 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 registered September 1 with the Texas Department of Licensing and Regulation.

The privately funded project carries an estimated construction cost of $1.44 million. Work is scheduled to begin on December 7 and reach completion by December 4, 2028. The state filing describes the site as a new lease space build-out in an existing office and warehouse building, though it does not specify employee headcounts or the materials that will be handled there.

The logistics expansion supports Tesla's corporate headquarters and Gigafactory Texas operations in Central Texas. The location could also strengthen supply chain ties along the cross-border corridor with Mexico, where suppliers in Nuevo León, Coahuila, Tamaulipas, Chihuahua, the Bajío region, and the state of Mexico ship components north to Tesla's Texas factory.

The project follows a second quarter in which Tesla delivered a record 480,126 vehicles worldwide and generated $28.24 billion in revenue, up 26% year-on-year. Quarterly capital expenditures doubled sequentially to $5.8 billion, with management targeting full-year spending above $25 billion. Meanwhile, company executives have cited battery availability and electronic components as ongoing constraints, even as production of the Class 8 Tesla Semi in Nevada remains on track to begin later this year.