Tesla rival expands in north San Jose
Chinese automaker leases additional 100,000 square feet
SAN JOSE » Nio USA, amid plans for a possible initial sale of its stock to the public, has launched a big expansion in north San Jose through the lease of offices next to its existing Silicon Valley headquarters.
The new offices are at 3100 N. First St. near Montague Expressway in San Jose. Nio USA, a maker of electric vehicles, has leased a nearly 100,000-square-foot building at that location, according to public documents on file with the Santa Clara County Recorder’s Office, and information gathered by this news organization at the company’s headquarters.
China-based Nio — a potential Tesla rival — already occupies the adjacent 85,000-square-foot office building at 3200 N. First St. The 3100 N. First St. building that Nio has just leased became
available when Broadcom decided to vacate the larger offices. The new deal more than doubles the size of what has emerged as its First Street and Montague Expressway campus.
Executives with Nio declined to comment on Monday for this report.
In recent weeks, reports have emerged from Bloomberg News and Reuters that
Nio USA, whose global headquarters are in Shanghai, had launched a secret initial public offering that could potentially raise $2 billion for the electric vehicle maker. Nio didn’t comment in those reports.
“I’m thrilled to see Nio expand their operations — and particularly growing their innovative, talented team — here in San Jose,” San Jose Mayor Sam Liccardo told this news organization on Monday.
A recent observation of the 3100 N. First Street offices, which total 99,000 square feet, showed that considerable construction was underway on the interior of the building. The parking lots flanking the 3200 N. First St. building were packed with vehicles.
An office building of the size that Nio has leased could potentially accommodate 400 to 500 workers. The existing Nio USA offices that the electric vehicle maker now occupies could potentially contain 340 to 425 employees.
CBRE and Colliers International, both commercial realty brokerages, arranged the new leasing deal.
At the time of a 2016 ribbon-cutting ceremony to open the company’s original offices in north San Jose, the company said it would have approximately 400 employees at the 3200 N. First St. building. Nio has roughly 4,000 worldwide workers.
Founded in 2014, Nio operates research and development, design and manufacturing centers in Shanghai, Beijing, San Jose, London, Munich and nine other cities.
Nio says its mission “is to shape a joyful lifestyle for our users by offering smart, premium electric vehicles and providing the best user experience.”
Nio has been testing autonomous electric vehicles in California through a permit from the state’s Department of Motor Vehicles.
“From day one, Silicon Valley has been integral to our strategy as a global start-up and I am energized by the culture we have built,” Nio executive William Li said at the time of the grand opening in 2016.
Tech titans such as Google, Apple, Facebook and Amazon — through property purchases,
leases, or in numerous instances, both — have paved the way for vast expansions of their operations in Silicon Valley and adjacent regions.
The new Nio deal in north San Jose — along with others — underscores that smaller tech companies also are pushing ahead with significant expansions in the South Bay.
Among those adding major spaces in north San Jose: Micron
Technology, Hewlett Packard Enterprise and Bloom Energy.
“With recent announcements from HPE, Bloom, Micron and now Nio, this area of the city is taking off just in time for the initiation of BART’s service to north San Jose next year,” Mayor Liccardo said.