Tesla 2011 Annual Report Download - page 72

Table of Contents
Facilities
Our corporate headquarters and powertrain production operations are based in Palo Alto, California. We have a lease with Stanford
University for 350,000 square feet which expires in January 2016 and houses our headquarters and powertrain activities. The Palo Alto facility
serves as our production facility for the electric vehicle components we utilize in the Tesla Roadster and for our powertrain component and
systems development and sales.
In May 2010, we entered into an agreement to purchase an existing automobile production facility located in Fremont, California from
New United Motor Manufacturing, Inc. (NUMMI), which is a joint venture between Toyota, and Motors Liquidation Company, the owner of
selected assets of General Motors. In October 2010, we completed the purchase and received title to the facility and land. The total cash paid was
$42.0 million. The purchase totals 210 acres, or approximately 55% of the land at the site, and includes all of the manufacturing facilities located
thereon totaling approximately 5.4 million square feet. We intend to use the facility and manufacturing assets for the production of our planned
Model S vehicle and to build our future vehicles. We are currently in an early stage of planning and building out this facility. We are required to
comply with environmental regulations in connection with our planned Model S manufacturing facility in Fremont, California. In October 2010,
we and NUMMI amended the May 2010 purchase agreement to include the transfer to us of certain operating permits, or emission credits, for
additional consideration of $6.5 million. We completed the transfer of these permits in October 2010.
Outside of our Fremont, California facility, we do not currently own any of our facilities. The following table sets forth the location,
approximate size and primary use of our significant leased facilities:
We anticipate that the build out of both our Palo Alto facility and our planned Model S manufacturing facility in Fremont, California will
be partially financed by our DOE Loan Facility.
We currently intend to add new facilities or expand our existing facilities as we add employees and expand our production organization.
We believe that suitable additional or alternative space will be available in the future on commercially reasonable terms to accommodate our
foreseeable future expansion.
From time to time, we are subject to various legal proceedings that arise from the normal course of business activities. In addition, from
time to time, third parties may assert intellectual property infringement claims against us in the form of letters and other forms of
communication. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on our results of operations,
prospects, cash flows, financial position and brand.
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ITEM 2.
PROPERTIES
Location (1)
Approximate
Size (Building)
in Square Feet
Primary Use
Lease
Expiration
Date
Palo Alto, California
350,000
Administration, engineering services and
manufacturing services
January 2016
Hawthorne, California
132,250
Vehicle engineering and design services
December 2022
Maidenhead, United Kingdom
8,870
Administration, sales, service and marketing
services
November 2015
(1) We also lease a number of facilities for our retail locations around the world, most of which are 5,000 square feet or smaller, and we are
leasing building space at Lotus
’
facilities in the United Kingdom for administration.
ITEM 3.
LEGAL PROCEEDINGS