Tesla Motors Inc (NASDAQ:TSLA) has rented the 431,000 square-foot vacant distribution facility owned by Daimler-Chrysler in Lathrop, California. The electric car manufacturer already received permits from the local government of Lathrop to renovate the facility.

Tesla Motors TSLA

Lathrop City Manager Steve Salvatore said the permits granted to Tesla Motors Inc (NASDAQ:TSLA) was for “manufacturing modifications.” According to him, the electric car manufacture already started renovating the distribution facility.

Distribution facility sits in a 29-acre complex

The Daimler-Chrysler’s Mopar distribution facility had been empty since 2009. At the time, Chrysler decided to combine its small parts distribution in Los Angeles and Portland. Prior to its closure, the distribution facility was used to deliver components for Chrysler Dodge, Jeep, Ram, as well as Mercedes-Benz to warehouses, parts distributors and auto dealerships across the West Coast.

Chrysler opened the distribution facility in 2001, and the company’s original plan was to hire 225 workers. At the time, the company was planning to merge with Mercedez Benz, but the merger fell apart. Chrysler had 45 employees in the facility at the time of its closure in 2009. The facility sits in a 29-acre complex and it has the capacity to accommodate a 125,000 square foot expansion. Chrysler did not use the entire space of the complex.

Tesla has not released details

Tesla Motors Inc (NASDAQ:TSLA) has not yet released any official details regarding the acquisition, the number and type of jobs available, and which manufacturing processes will take place in the facility.

Gigafactory

Tesla Motors Inc (NASDAQ:TSLA) previously announced its plan to build a $5 billion Gigafactory. The company is considering four states including Arizona, New Mexico, Texas, and Nevada as the location for its massive battery factory.

According to the electric car manufacturer, the gigafactory is designed to reduce cell costs at a faster rate than the status quo by 2020 and produce more lithium-ion batteries per year compared with the worldwide production last year. Tesla Motors Inc (NASDAQ:TSLA) will also have the opportunity to leverage the demand for lithium ion batteries to reduce the cost of its planned production of mass market electric cars at a faster rate than anticipated.