Trading disclosure
The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Learn moreBorderlands Mexico is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week in Borderlands Mexico: Tesla plans massive distribution center near Austin and Danfoss launches new production line in Mexico for North American market.
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.
The project represents another expansion of Tesla's operations in Central Texas, where the company has established Austin as its corporate headquarters and operates its massive Gigafactory Texas manufacturing complex.
Tesla's (Nasdaq: TSLA) growing logistics footprint comes as the company ramps production and invests heavily in manufacturing capacity. Tesla reported second-quarter revenue of $28.24 billion, a 26% increase from a year earlier, while delivering a record 480,126 vehicles worldwide during the quarter.
Tesla said capital expenditures more than doubled sequentially to $5.8 billion during the quarter, with management expecting spending to exceed $25 billion this year as the company expands manufacturing capacity.
Executives have also said battery availability and electronic components remain constraints on increasing vehicle production.
The company is also preparing to ramp production of its Class 8 Tesla Semi at its Nevada manufacturing facility. Tesla said in July that the Semi factory remained on schedule, with production expected to begin later this year.
The Mustang Ridge distribution project could also strengthen Tesla's position along the Texas-Mexico automotive corridor, although the state filing does not identify the facility's suppliers, customers or freight lanes.
Story Continues