The first Tesla Inc. store in Anaheim could soon have a collision repair center, the Business Journal has learned.
Elon Musk’s Austin-based electric vehicle maker filed an application on July 15 to build the repair center within a 38,753-square-foot industrial building at 5472 E. La Palma Ave., according to paperwork filed with the city of Anaheim.
The center would be about one-quarter of a mile from a Tesla dealership that replaced the former Starlight Cinema City Theatres near Imperial Highway and the Riverside (91) Freeway.
Though the nation’s top EV maker has seen overall sales decline in recent months, it remains Orange County’s second most popular vehicle, following Toyota and ahead of Honda.
An Anaheim spokesperson told the Business Journal that Tesla’s application is being reviewed by planning, public works and public utilities departments. The review, according to the spokesperson, takes about 30 days to complete and could result in a request for more information or changes.
Any request for changes or new information could trigger another round of reviews.
Tesla’s application would make its way to the city’s Planning Commission, likely before the end of the year. The collision repair center would require approval of a conditional use permit to be built.
The building at 5472 E. La Palma Ave. was previously leased to a heating, ventilation and air conditioning company.
The proposed collision center would be for Tesla drivers who bring their vehicles to the dealership for service needs but also need to complete auto-body work.
Tesla in Anaheim and Orange County
Tesla opened its first Anaheim store in the city last November, replacing a former Anaheim Hills movie theater at 5635 E. La Palma Ave.
Tesla Center Anaheim is within Imperial Promenade, a retail center that primarily services Anaheim Hills and Yorba Linda.
There are also Tesla stores and galleries in Aliso Viejo, Brea, Buena Park, Costa Mesa, Irvine and Mission Viejo.
Tesla sold 9,395 vehicles in Orange County during the first five months this year, a 15% decline, according to the OC Automobile Dealers Association. Tesla has 13% of the OC market, trailing Toyota’s 18%.
Though Rivian Automotive Inc. is based in Irvine, the local EV maker is less popular than Tesla. Rivian has a 0.8% market share as its OC unit sales fell 10% to 594 in the first five months, the association said.
Rivian on Aug. 5 reported second quarter companywide deliveries dropped 23% to 10,661.
Tesla is the most highly valued automaker in the world, with a $1 trillion market cap (Nasdaq: TSLA). Rivian’s market cap was $14.7 billion last week (Nasdaq: RIVN).
Tesla and the Market
Tesla’s filing to potentially expand one of its Orange County dealerships came a few weeks before the electric vehicle maker awarded Musk $29 billion in stock, according to multiple news reports.
The award comes after the EV maker in late July reported second quarter earnings that missed analysts’ expectations, triggering its stock to fall by 8%.
The company delivered more than 384,000 Tesla models in the second quarter of 2025, almost 40,000 fewer deliveries than what was reported one year earlier.
Total automotive revenues in the second quarter were down 16% year-over-year.
Tesla reported its revenues were down due to a decline in vehicle deliveries, lower regulatory credit revenue, a decline in energy generation and storage returns, and a reduction in average selling prices for the auto manufacturer’s models. The company has also faced increased competition and backlash from Musk’s recent stint cutting government waste under President Donald Trump.
The electric vehicle maker, however, reported a 20% increase in test drives in North America.
Tesla, in its 2025 second quarter earnings report, said the company is trying to navigate various economic landmines.
“It is difficult to measure the impacts of shifting global trade and fiscal policies on the automotive and energy supply chains, our cost structure and demand for durable goods and related services,” Tesla said in its earnings report.
“While we are making prudent investments that will set up both our vehicle and energy businesses for growth, the actual results will depend on a variety of factors, including the broader macroeconomic environment, the rate of acceleration of our autonomy efforts and production ramp at our factories.
“We have sufficient liquidity to fund our product roadmap, long-term capacity expansion plans and other expenses,” Tesla continued in its forecast statement.
