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Tesla is causing an explosion in Bay Area manufacturing

As Apple, Hewlett-Packard, and Intel did for Silicon Valley with the computer business, Tesla is doing for the Bay Area with intelligent manufacturing centered around electric cars. There are already 50 northern California companies that supply Tesla, with more on the way, according to the San Francisco Business Times.

Right now Tesla’s over 6 million square feet of factory space in Fremont represents about 12 percent of the city’s 50 million square feet total of commercial space. In all, Fremont has approximately 900 manufacturers and Tesla is by far the largest. Tesla has roughly 300 suppliers around the world and, according to those currently seeking space in and around Fremont, the firm encourages its suppliers to move closer. Because of Tesla’s huge production goals and growing demand on suppliers, apparently many companies see the value in proximity to the Tesla mother ship.

Related:  Tesla factory is producing Model S, Model X at a rate of 2,000-plus per week

The influx is not only among Tesla suppliers but other car companies as well. Farrady Future is headquartered in Gardena, California, south of Los Angeles, but is going to build a production plant in Vallejo, about an hour north of Fremont. Electric car startup Atieva is in Palo Alto, the same city as Tesla’s headquarters, about 35 minutes west, across the bay from the Fremont factory. Google’s Self-Driving Car Project is centered in Mountain View, California, also across the bay. Most major car companies headquartered elsewhere in the country and the world have computer-related tech development labs in the area, says the San Francisco Business Times.

Fremont Economic Development Director Kelly Kline believes manufacturing and supply growth in the city and its surroundings is just beginning. “The greatest impact is yet to come,” said Kline. “We are moving so quickly. It’s all hands on deck in the city to meet the needs of Tesla and their supply chain.”