Tesla Taps Into Orange County With Plans for a Distribution Center

Since popping up at dealerships all over the Hudson Valley, Tesla now plans to open a vehicle parts distribution center in Newburgh.

With the rise of electric vehicles, one name stands out as being at the forefront of America’s automotive industry: Tesla. The Texas-based clean energy company was born in 2003 but has seen an exponential growth in the popularity of its electric vehicles in recent years. More people continue to purchase Teslas around the world and in the Hudson Valley, with retailers from New York City to Albany carrying the household name at their dealerships.


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As a result, Tesla has decided to invest in a vehicle parts distribution center in Newburgh off Route 300. The site was originally supposed to be a new shopping mall, an idea proposed over a decade ago that never came to fruition. However, the space is now being reclaimed to house Tesla parts in its 927,000 square feet. New Jersey-based Matrix Development Group built the warehouse, along with a smaller 215,000-sq-ft building, after securing approvals for the business park in 2022. Matrix is a highly accomplished firm boasting a rich portfolio of projects in Orange County like AmerisourceBergen and wineshipping.com.

Maureen Halahan, CEO and President of the Orange County Partnership, which supported the approval of the Tesla project, assures that “Our market is strong – we will continue to support site development in the effort to attract more quality companies to Orange County. We welcome Tesla to Orange County with open arms.”

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The distribution center is projected to open by the year’s end and employ more than 150 employees with hopes of hiring more in the future. Not only does the new Tesla center plan to provide employment opportunities to hundreds of Orange County and Hudson Valley natives, but it also aims to raise income levels of the area and increase competition for the region’s workforce. On a larger scale, Tesla is yet another in a long list of major American business names that are setting up shop in Orange County. (Do Ball Corporation, Pepsi Cola, and Staples ring any bells?)

As for the other building on the site, a Walgreens fulfillment center was being considered to take over the space, according to the Orange County Partnership. The site is a strategic location due to its proximity to the I-84 and I-87 interchange, as well as to New York Stewart International Airport. Tesla’s distribution center will only carry vehicle parts and will not focus on manufacturing but will surely be a positive addition to Orange County’s ever-growing economy.

Related: Newburgh Is a Hub for History and Culture in Orange County

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