Tesla City is an abandoned and partially destroyed city located in the Frostland. It neighbours New London and Winterhome. The city was settled somewhat earlier than New London was by American refugees from a downed dreadnaught. The city is captained by Nikola Tesla, the owner of the largest company in the world, Tesla Manufacturing. Tesla later becomes increasingly authoritarian and exiles those who are unable to work (amputees, children, etc.) Unlike other cities, Tesla City is sheltered by a large Tesla Coil, that forms a protective dome over the city. Unfortunately, the Coil begins to go out of control, destroying buildings and zapping people, leaving little survivors. The survivors and exiles can be found throughout the Frostland, and can be brought in as citizens of New London.

Tesla City contains a large amount of high tech equipment capable of producing Steam Cores, a valuable resource in the game. An outpost producing 1 Steam Core every 24 hours can be established there.