Santa Clarita officials confirmed Monday they’ve received plans for a new Tesla dealership.
Tesla bought the real estate of two dealerships in the city’s auto row and the carmaker is now building a store and service center, according to a person familiar with the deal who spoke on background.
“We are excited about the possibility of Tesla coming to Santa Clarita,” said Jason Crawford, director of community development for the city. “They are a brand that we know residents want to see here, and will add another great name to our Auto Center. We are working on plans for them right now.”
A representative from Tesla’s U.S. division did not respond to a request for comment Tuesday.
The property is zoned for auto sales and previously had auto sales, as the new Tesla location will combine properties where there previously was a Hummer dealership that had an entrance on Magic Mountain Parkway and the former Volkswagen dealership with its entrance on Creekside Road, according to city officials.
Tesla’s sales model is slightly different from most car and truck manufacturers, according to Steve Keefe, COO of Parkway Motors, which is across the street from where Tesla is going.
All Tesla dealerships are owned by Tesla, and now that there is a proliferation of options in the electric vehicle market, some local dealers are welcoming the competition.
It’s well-known that the carmaker has wanted to be in the Santa Clarita Valley for some time due to its popularity, according to Keefe.
Previous Santa Clarita plans involving Tesla included the discussion of a dealership location in the Westfield Valencia Town Center about seven years ago. Those plans hit a wall because the city only permits new car sales in its vehicle dealer zone, which does not include the Valencia mall.
The arrival of new competition in the EV market is being welcomed by some dealers, Keefe said, including himself, because there are a lot more products that can compete with Tesla, and independent dealers have more flexibility to compete on price.
“We’re excited because most of our brands that are across the street from it — you’ve got Cadillac, which is going to go all-electric; Buick is going to go all-electric, we’ve got some beautiful cars coming out; the Hummer brand is back and it’s all-electric — so we’re going to have an extensive amount of electric vehicles right across the street.”
The two addresses identified for the project are 24075 Magic Mountain Parkway and 24050 Creekside Road.