Automotive

Tesla eyes Tonsley for new facility in proposed plans with City of Marion

A proposed Tesla factory in Tonsley could bring 100 jobs to Adelaide, pending public feedback and council approval.

Adelaide could soon be home to one of the world’s biggest businesses, with developer MAB CCT Pty Ltd approaching the City of Marion with plans to build a custom factory for Tesla.

Founded by entrepreneur Elon Musk, Tesla is an American automotive company that makes electric vehicles, solar panels, car batteries, home energy storage systems, and more. Tesla is one of the world’s most valuable automakers and is a leading electric vehicle manufacturer.

MAB CCT Pty Ltd has submitted a proposal to buy Chestnut Court Reserve in Tonsley, as part of the City of Marion’s Unsolicited Proposal process. This process allows private companies to put forward ideas, which the Council then reviews fairly and transparently to make sure any decision delivers strong benefits for the community.

The proposal states that the establishment of a long-term tenancy for Tesla will bring significant economic benefits and approximately 100 jobs. The facility will be for servicing and the repurposing of Tesla batteries. It will also become a showroom for Tesla vehicles. Currently, Tesla already has a service centre in the area and a strong connection to the clean technology energy agenda of the Tonsley Innovation Precinct.

The company is proposing to use the reserve as the site for a new factory. However, it’s important to note that Chestnut Court Reserve has been closed to the public since 2016 due to contamination. If the sale goes ahead, MAB CCT would be responsible for cleaning up the site before any development could take place.

Mayor of Marion Kris Hanna shared, “Marion Council endorsed this proposal for community consultation and we are eager to hear feedback. It is important to note the general public do not currently have access to and have not had access to this site since 2016 due to contamination concerns. These concerns would have to be addressed and/or mitigated by the prospective purchaser.

“The proposed tenant, Tesla and their renewable energy business, fits the Tonsley Innovation District’s vision. The project would create new jobs.

“Obviously ratepayers will receive a benefit from sale of the currently worthless land, but the deal is confidential until it becomes certain. If the sale goes through, Council would receive tens of thousands of dollars per year in rates for the site (which includes much more than just the disused council reserve).”

The proposed site includes three key areas of land, including sections owned by Renewal SA, the Chestnut Court Reserve area, and part of South Australian Housing Trust land. Some of the South Australian Housing Trust-owned area is currently leased to the Council and used as public open space, with the lease running until 2028.

If the development is to go ahead a total of 58 trees would have to be removed, including 2 significant trees and 28 regulated trees. To offset this, an estimated 62 trees would need to be planted in their place.

City of Marion residents are being asked to share their feedback on the proposal up until April 17th, which can be submitted via the City of Marion’s official website.

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