The Tesla deal with the Las Vegas-based mall owner will give the automaker $3.8 billion to build and operate a massive new shopping center on the outskirts of Las Vegas.
The $5.8-billion mall is slated to open in 2019, making it Tesla’s biggest in the United States.
The deal, which the company said is “expected to close by the end of 2018,” is expected to generate about $10 billion in annual sales, according to Bloomberg.
Tesla will retain its stake in the mall and use it for other purposes, including developing electric vehicle battery storage infrastructure, according a statement from the company.
Tesla CEO Elon Musk has been a big supporter of the mall.
Last year, he said the mall would “be the biggest mall in the world,” and noted that its expansion is expected “to increase its market share in the years to come.”
He added that the deal will help “increase the value of our assets and increase the value for our shareholders.”
The mall’s current owner is the Las Villas Las Vegas Development Corp., which will retain a majority stake.
The company will retain ownership of the entire project, which will include a retail, entertainment, and residential area.
Tesla, which also operates a Tesla retail store in the area, said it has a plan for the mall’s future.
“We are exploring multiple options to extend our existing presence in Las Vegas, including leasing the entire property,” the company wrote in a statement.
“It’s important to note that we remain committed to providing a quality, cost-effective experience for our customers.”
Tesla will also acquire another $1.2 billion worth of space and office space at the mall in 2019.