Elon Musk led Tesla Motors has opened its new showroom in Palo Alto to expand its presence in the Bay Area to attract more customers to the brand.

Hundreds of people gathered at opening of America's newest Tesla store, which is located not far from the Stanford University and Google's campus, to take pictures of the models and the shiny new showroom. The new 27,000 square foot retail outlet will be the fifth location in the Bay Area beasides stores and service centres at Santana Row in San Jose, Fremont, Burlingame and San Rafael.

Telsa spokeswoman Alexis Georgeson said, "It's in the heart of Silicon Valley. The market is very strong for us in the Bay Area and Silicon Valley. We're opening stores in places where we expect to sell vehicles."

Tesla now operates 41 locations across various locations in North America. Palo Alto-based Tesla Motors has said that it hopes to become profitable for the time by next year after launching Model S. Musk expects the Model X to sell as well as Model S in the market. The new SUV with gull-wing doors, Model X is claimed to be faster than Porsche AG's 911 sports car and has more space than Audi AG's Q7 SUV. The model will be launched in the market following the debut of the company's Model S sedan.

The Model X will be produced in 2013 at the company's Fremont, California. The car deliveries will begin next year and will pick up pace in 2014.