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Tesla to lease 3 warehouses along I-35 in Kyle in major expansion

Tesla will take over nearly 1 million square feet in the new Kyle/35 Logistics Park and could eventually lease the entire park.

KYLE, Texas — Tesla is expanding into Hays County, according to Kyle Mayor Travis Mitchell, who made the announcement Tuesday afternoon during his State of the City address.

The Austin-based electric vehicle manufacturer plans to lease three warehouses along Interstate 35 in Kyle and could rent more later on.

The buildings will be located in the new 1.4 million-square-foot Kyle/35 Logistics Park development near Logistics Drive and South Goforth Road. Mayor Mitchell said Tesla will use the space for storage and light assembly.

Tesla will take over nearly 1 million square feet in the development and, according to the Austin Business Journal, could eventually lease the entire park.

There's no word yet how many people the warehouses will employ.

Those warehouses are about 35 miles away from Tesla's Gigafactory in southeast Travis County. That facility has been making the company's new Cybertruck and has at least 12,000 employees.

After years of delays, the first one of those cars rolled off the assembly line last month. The company could start rolling them out to customers later this year.

Boomtown is KVUE's series covering the explosive growth in Central Texas. For more Boomtown stories, head to KVUE.com/Boomtown.

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