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Tesla Fremont Factory
The Tesla Fremont Factory is an automobile manufacturing plant in Fremont, California, United States, operated by Tesla, Inc. The factory originally opened as General Motors' Fremont Assembly in 1962, and then was operated by New United Motor Manufacturing, Inc. (NUMMI), a joint venture of GM and Toyota from 1984. The joint venture ended when GM entered bankruptcy in 2009. In 2010, Toyota agreed to sell the plant to Tesla at a significant discount. The plant was formerly the production site of the Model S and Model X—both discontinued—and also produces the Model 3, and Model Y.
In 2023, the Fremont Factory produced nearly 560,000 vehicles and employed over 20,000 people. Tesla says the factory has the capacity to produce up to 100,000 Model S and X vehicles and 550,000 Model 3 and Y vehicles annually.
Tesla had planned to build a factory in Albuquerque, New Mexico, a central location for shipping. Construction was supposed to begin in April 2007, but was canceled. The company later announced a greenfield factory would be built in nearby San Jose, California. However, the cost of both projects was prohibitive, and the company looked for alternatives.
An opportunity presented itself in 2010 when Toyota was looking to sell the NUMMI plant in Fremont. NUMMI had been operated as a joint venture between Toyota and General Motors from 1984 until GM filed for bankruptcy in 2009. NUMMI yearly production peaked at 428,633 vehicles in 2006. Prior to NUMMI, the facility was the GM Fremont Assembly from 1962 to 1982. Efforts were made in 2009 to keep the facility in use: the state offered incentives to Toyota, other automakers including Tesla toured the facility, and a stadium was considered, but none of them succeeded. In 2010 the mayor of Fremont viewed the site as dead.
During its 2009 tour, Tesla initially dismissed the NUMMI site for being too big and costly for the then fledgling automaker. However, the company was able to reach a deal with Toyota to pay $42 million for most of the site, significantly under market value. As part of the agreement, Toyota would also purchase $50 million of common stock when Tesla held its IPO the next month. In exchange, Tesla agreed to partner with Toyota on the "development of electric vehicles, parts, and production system and engineering support." Under the agreement, Tesla would go on to create the electric powertrain for the second-generation Toyota RAV4 EV. The two companies would later end their partnership in 2017.
On April 1, 2010, NUMMI produced its last car. All of the factory equipment was sold at auction, with robots and tooling being purchased by Toyota's plants in Kentucky, Texas and Mississippi. NUMMI sold some equipment to Tesla for $15 million, a significant discount compared to new equipment.
Tesla officially took possession of the site on October 19, 2010, and started work inside on October 27. The state of California awarded Tesla $15 million in tax credits if employment and investment goals were met. The first retail delivery of the Tesla Model S took place during a special event at the factory on June 22, 2012.
The plant is located in the South Fremont District next to the Mud Slough between the Warm Springs BART station and the California State Route 262 connecting Interstate 880 and Interstate 680.
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Tesla Fremont Factory
The Tesla Fremont Factory is an automobile manufacturing plant in Fremont, California, United States, operated by Tesla, Inc. The factory originally opened as General Motors' Fremont Assembly in 1962, and then was operated by New United Motor Manufacturing, Inc. (NUMMI), a joint venture of GM and Toyota from 1984. The joint venture ended when GM entered bankruptcy in 2009. In 2010, Toyota agreed to sell the plant to Tesla at a significant discount. The plant was formerly the production site of the Model S and Model X—both discontinued—and also produces the Model 3, and Model Y.
In 2023, the Fremont Factory produced nearly 560,000 vehicles and employed over 20,000 people. Tesla says the factory has the capacity to produce up to 100,000 Model S and X vehicles and 550,000 Model 3 and Y vehicles annually.
Tesla had planned to build a factory in Albuquerque, New Mexico, a central location for shipping. Construction was supposed to begin in April 2007, but was canceled. The company later announced a greenfield factory would be built in nearby San Jose, California. However, the cost of both projects was prohibitive, and the company looked for alternatives.
An opportunity presented itself in 2010 when Toyota was looking to sell the NUMMI plant in Fremont. NUMMI had been operated as a joint venture between Toyota and General Motors from 1984 until GM filed for bankruptcy in 2009. NUMMI yearly production peaked at 428,633 vehicles in 2006. Prior to NUMMI, the facility was the GM Fremont Assembly from 1962 to 1982. Efforts were made in 2009 to keep the facility in use: the state offered incentives to Toyota, other automakers including Tesla toured the facility, and a stadium was considered, but none of them succeeded. In 2010 the mayor of Fremont viewed the site as dead.
During its 2009 tour, Tesla initially dismissed the NUMMI site for being too big and costly for the then fledgling automaker. However, the company was able to reach a deal with Toyota to pay $42 million for most of the site, significantly under market value. As part of the agreement, Toyota would also purchase $50 million of common stock when Tesla held its IPO the next month. In exchange, Tesla agreed to partner with Toyota on the "development of electric vehicles, parts, and production system and engineering support." Under the agreement, Tesla would go on to create the electric powertrain for the second-generation Toyota RAV4 EV. The two companies would later end their partnership in 2017.
On April 1, 2010, NUMMI produced its last car. All of the factory equipment was sold at auction, with robots and tooling being purchased by Toyota's plants in Kentucky, Texas and Mississippi. NUMMI sold some equipment to Tesla for $15 million, a significant discount compared to new equipment.
Tesla officially took possession of the site on October 19, 2010, and started work inside on October 27. The state of California awarded Tesla $15 million in tax credits if employment and investment goals were met. The first retail delivery of the Tesla Model S took place during a special event at the factory on June 22, 2012.
The plant is located in the South Fremont District next to the Mud Slough between the Warm Springs BART station and the California State Route 262 connecting Interstate 880 and Interstate 680.