Beam Global (Nasdaq: BEEM) announced it will relocate its California manufacturing and production operations to Yuma, Arizona, while retaining its corporate headquarters in San Diego. The company's facilities in Chicago, Belgrade, Kraljevo, and Abu Dhabi will continue operating without change.

The Yuma campus comprises two adjacent industrial buildings totaling approximately 55,000 square feet of office and manufacturing space. Beam Global will occupy the first building on July 15, 2026, and the second on January 1, 2027, under a lease running through July 31, 2031. The company holds an option to purchase the property at a fixed price during the lease term.

The company projects rent savings of approximately $400,000 in 2026 and $2.7 million over the five-year lease term compared to its current San Diego facilities. Additional cost reductions are anticipated from lower labor, benefits, insurance, utilities, and regulatory expenses in Arizona, as well as potential incentives from the city of Yuma and the state of Arizona.

Beam Global also said the new location may allow it to bring in-house several manufacturing processes currently outsourced in California, which it attributed to permitting and compliance costs in that state.

"This relocation is one of the most impactful steps we can take to improve our gross margins and move more quickly toward becoming cash flow positive," said Desmond Wheatley, CEO of Beam Global. "We are de-risking our business and dramatically reducing our costs."

The company stated that production will continue without interruption during the transition. The Yuma facility is located in a manufacturing zone with access to road and rail connections, which management said is expected to reduce shipping costs.