Fresh off a better-than-expected quarter for vehicle deliveries, Tesla Inc. is investing in its Central Texas logistics network with a new project in Taylor.
A state filing identifies the planned $1.6 million project as a “Tesla Railhead” at RCR Taylor Logistics Park. Tesla is not listed as the owner or tenant, but the automaker began leasing space at the site in 2024.
At the time, Tesla was reportedly using a rail-served building at the park to ship cars. The new project is expected to add steel hail canopies over the vehicle lot, covering more than 229,000 square feet, and scheduled to start later this month.
Located off U.S. 79, RCR Taylor Logistics Park opened in early 2021 with dual Class I rail service from Union Pacific and BNSF railroads. The 755-acre site offers transloading and storage for firms in Central Texas and is less than 5 miles from Samsung’s semiconductor facilities. In addition to companies that support Samsung, it has also counted Texas Materials Inc. and Partners Real Estate among its customers.
The transloading services cover several types of loads, including construction materials, petroleum products, automobiles and more. The park says that rail cars can carry four truckloads of product, making shipping by rail more fuel efficient than trucks.
In addition to the park in Taylor, Tesla has taken on other leases in the Austin metro area. In 2023, it started leasing nearly 1 million square feet of industrial space in warehouses at the Kyle 35/Logistics Park. CEO Elon Musk’s Terafab project, which Tesla also plays a part in, has a lease at Seaholm Power Plant in downtown Austin.
Meanwhile, Tesla recently launched a new vehicle to assist with its logistics and supply chain needs. At the launch event for the Tesla Semi last month, Dan Priestley, director of the Semi program, reflected on picking Nevada as the location for the factory.
“We picked this site, and then immediately it became clear, like why are we shipping parts for electric cars on diesel trucks?” Priestley said. “This doesn’t feel right, and we knew we had to do something about it.”
Priestley said Tesla plans to use the Semi for its own freight, while also serving customers including PepsiCo, DHL and US Foods.
Construction at the Taylor park is one of many project Musk’s businesses are taking on in the Austin metro area. Later this year, Tesla is expected to start construction on a $1.44 million Mustang Ridge Distribution Center covering 538,720 square feet. Tesla’s other recent activities are taking shape at Gigafactory Texas, with construction on the company’s semiconductor facility, new north campus manufacturing space and construction on its AI training supercluster.