So why don’t they just use their previous plant?
Tesla manufactures the Model S in Fremont, California, in an assembly plant formerly operated by NUMMI, a defunct joint venture of Toyota and General Motors, now called Tesla Factory. Tesla purchased a stake in the site in May 2010 for US$42 million, and opened the facility in October 2010.
The fact that they are considering sites in OTHER STATES just shows you how prohibitive manufacturing in California has become.
They outgrew it with the rise in demand for their product.