The facility in question was formerly used by aerospace companies like Vultee, Boeing and Rockwell and, under Tesla, may create in between 1,200 to 1,500 jobs.
If true, Tesla's business would mean bringing back car manufacturing in the area after a 20 year drought.
Tesla has not confirmed the report which surfaced in the Los Angeles Time. The site in Downey City, where Tesla is said to plan production, is currently used by Industrial Realty Group, owner of film and television production Downey Studios.
According to just-auto.com Tesla dropped plans to open a new facility in San Jose and Albuquerque. Tesla, although has confirmed Southern California as the primary site for its future facility, declined to mention whether Downey is the respective location.
Towards the end of the summer, Tesla moved its offices from San Carlos, CA to Palo Alto. The new site houses, aside for the offices of the company, a powertrain manufacturing facility that will employ around 350 people.
"It's an ideal place for a new car company trying to rethink many aspects of the traditional automotive business," Tesla's CEO, Elon Musk.
The 369,000 square-foot facility will be used to supply all-electric powertrain solutions to Tesla vehicles. Tesla, currently involved in negotiations with a number of companies for an assembly plant to build the future Model S, emphasized the new model will be produced at a separate factory in California, not at the one in Palo Alto.
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