Tesla Motors (TSLA) is expanding operations by adding a facility in the Northern California city of Lathrop. Despite the news, Tesla shares fell almost 4% in Wednesday morning trading.

The luxury electric car marker has leased a 431,000-square-foot facility formerly occupied by Chrysler’s Mopar parts distribution unit. Tesla has secured permits from the city to renovate the structure to meet its needs and is installing production equipment, Automotive News notes.

Tesla has also posted ads to fill 32 new positions at the Lathrop facility on its website.

In a statement, Tesla said that its “ongoing infrastructure expansion” would lead to more jobs in California. Tesla noted that it has leased “more than 625,000 square feet of Californian real estate, independent of sales and service centers,” over the last two months.

Earlier this year, Tesla announced plans to build a massive factory to produce batteries for its vehicles. Tesla says it is looking at potential sites for the new factory in Arizona, Nevada, New Mexico and Texas.

TSLA stock closed at $218.64 a share on Tuesday.

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