Tesla adding Golden Valley and Lake Elmo dealerships

Electric car maker Tesla Inc. plans to open new dealerships in Golden Valley and Lake Elmo.

Denver-based Drake Real Estate Services acquired the Golden Valley site and is developing the project, Golden Valley planning manager Jason Zimmerman confirmed. It will be a sales and service center.

"The building that was there is currently being demolished," said Zimmerman.

The site at 650 Ottawa Avenue N., a former manufacturing facility, is just off of Highway 55 and east of Highway 100. Zimmerman said that the new building will be about 50,000 square feet.

Lake Elmo mayor Charles Cadenhead said that a Tesla showroom is also in the works there.

"It's in the plan review stage. We hope that they can start construction this summer," Cadenhead said.

The Lake Elmo site is a vacant lot on North Hudson Boulevard.

Gene Munster, managing partner of Minneapolis-based investment firm Deepwater Asset Management, said that the bulk of Tesla sales are online. Munster has a national reputation as a tech industry analyst and investor.

"I think the real objective of these stores is more for service than it is for sales," said Munster. "There's been delays. ... Service has been a problem for them."

Tesla currently has dealerships in Eden Prairie, Maplewood and Rogers.

In January Texas-based Tesla reported that its vehicle deliveries increased by 40% last year while its production was up 47%. It reported 1.3 million vehicle deliveries in 2022 and production of 1.4 million vehicles.

Tesla did not respond to an inquiry about its plans in the Twin Cities.

That project is not moving forward. The city approvals have expired.

"The developer is probably looking for alternatives," said Londell Pease, senior planner for Bloomington.