Tesla Changing the Makeup of Silicon Valley

2014 Tesla Model S interior (Credit: Tesla Motors)

The Silicon Valley has a definite culture and landscape that is unique, but it seems that Tesla Motors is affecting it on multiple fronts. The San Jose Mercury News recently reported on the issue, stating that the automaker is creating a new “ecosystem” that allows it to conduct business in California, a state that isn’t well-known for being a good place to build cars.

Right now, Tesla Motors employs about 6,000 people in California, making it the single-largest automotive employer in the state. The vast majority of those employees are involved in the manufacturing process of the Model S and upcoming Model X. As demand grows for the electric automaker’s vehicles, that number is supposed to swell soon to about 6,500 employees and no doubt will continue to grow.

As can be expected when a business starts to do well, Tesla has been drawing in support businesses of all kinds that are eager to work with it. For example, Eclipse Automation, a company that performs tests on manufacturing equipment, located some new offices in Fremont just so that it can be near Tesla’s headquarters. An Australian company called Futuris, which produces a number of components for the Model S like the leather seats, has also moved some of its operations to the Silicon Valley. Anyone who knows the area is aware that it isn’t really a production hub, which is odd since Tesla is starting to make it one.

The physical layout of the Fremont area, where Tesla’s production facility is located, should start changing even more as a Warm Springs Innovation District that is in the works grows up around it. The surrounding land will be developed so that support businesses can be nearby, as well as shopping, housing and even entertainment venues. You could say that Tesla Motors is knocking down barriers on a number of fronts, including in California.