The massive warehouse in Pontoon Beach, Illinois, acquired by Tesla, might be used as a distribution center for its service division in the middle of the country.
However, Tesla did not say how it will utilize the new building.
Gigafactories
A local newspaper, Courier Tribune, reported that the electric car maker had leased a 667, 000-square-feet warehouse at Gateway Tradeport. The location is part of the proposed industrial park in Pontoon Beach, near St. Louis.
The latest acquisition does come as a surprise for the industry, knowing Tesla's penchant for big buildings or gigafactories.
On its website, Tesla wrote the gigafactories in Nevada and Texas are part of its goal to ramp up the global transition to sustainable energy by increasing the production of electric cars and energy products.
Neither Tesla nor its developer did not respond to a request for comment from the local newspaper.
'Distribution Center'
While the electric car maker did not make public its plan for the massive warehouse it has leased, it added a number of job listings for Pontoon Beach.
One of the job listings was for the position of Area Supervisor for Tesla's "highly dynamic parts distribution center."
It appears the massive warehouse will be Tesla's giant distribution center.
'Revolutionize' Service
The acquisition of the warehouse in Illinois came several months after Tesla CEO Elon Musk announced he wanted to "revolutionize" service.
In a company-wide meeting, Musk said the company still has "a relatively conventional approach to servicing."
He wanted the company to explore how to revolutionize the service division by as much as 10 times better than others.
Availability of parts for speedy service is one of Tesla's weaknesses. That is why a better inventory of all company's service centers is part of the plan, Musk said.
And Tesla's aim to make at least two-thirds of appointments same-day repairs appears to be moving along in this direction.
Parts Inventory a Critical Part
To achieve a majority of appointments, same-day repair requires a dynamic procedure of parts inventory. Service centers can only do so much while waiting for parts to complete repairs.
Suppose the massive warehouse in Pontoon Beach will be Tesla's giant distribution center strategically located in the middle of the country. In that case, it will speed up getting parts to service centers across North America.
It is not yet clear when the electric car maker can start the giant distribution center. The massive warehouse it has acquired is still undergoing construction.
Musk Wants More People, More 'Specialization'
Musk wanted more people who would repair cars. The present ratio of people that repair cars to customers need improvement, he said,
A higher ratio of people fixing cars is needed, he said.
Not only more repairmen, Musk also wanted Tesla to move in the direction of "specialization" like what the factories are doing.
The company is going to be a model of bigger service centers with more specialization, he said.
Musk hinted the changes are not only about North America. It will be global, he said.
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