Tesla Motors Inc (NASDAQ:TSLA) is gearing up plans to expand its presence in New York City (NYC), as it is taking measures to build a new showroom and service center in its most populous borough, Brooklyn. The news comes as the city officials aim to promote green-energy vehicles and put an end to the fossil fuel age.
The Real Deal reported that the electric vehicle (EV) company is prepared to anchor office conversion of LIVWRK, a real-estate agency, at 160 Van Brunt Street in Red Hook. Sources revealed that CEO Elon Musk signed a lease for a new store, service center, and office on the ground flooring across about 40,000 square feet at a property of 98,650 square feet.
The facility will be the company’s first venture into Brooklyn, which has four Destination Charging locations, and its second franchise store and first service center in NYC. Tesla has a store in Manhattan that is roughly 8 km away from Brooklyn. Across the State of New York, the automaker has six stores, two service centers, eight Superchargers, and 97 Destination Charging locations.
The sources also told the EV maker is making moves to outfit its space at the three story building. According to its website, Tesla recently posted openings for sales and service positions for the new facility. Although the lease terms were not reported, the car manufacturer’s leases typically comprise of 10 to 15 years. LIVWRK purchased the building for $21.5 million in 2014 from a marine-engine repair shop, Golten Marine.
Since the lease for the existing store in Manhattan expires in July, the company is also making moves to find a new store location to continue offering test drives and selling its vehicles in the borough. In Decemeber, NYC Mayor Bill de Blasio stated that he expects the city to use the largest municipal EV fleet in the US by 2025, replacing 2,000 fuel-driven sedans. The state plans to install an extensive charging station network. Tesla could take advantage of this transition and elevate its Model S and Model X sales in the region.