Tesla helped create an arc-lighting system in Rahway, New Jersey, during the 1880s. His Tesla Electric Light and Manufacturing Company operated there from 1884 to 1886, developing equipment for a growing market in outdoor electric illumination.
After leaving Edison’s employment, Tesla entered a partnership with Robert Lane and Benjamin Vail. The company assigned him to design an arc-lighting system, including an arc lamp with automatic adjustment and a fail-switch. By 1886, Tesla had installed a central-station system in Rahway that lit streets and several factory buildings.
Arc lighting used an electrical arc between carbon electrodes and was much brighter than early incandescent lamps, making it attractive for streets and industrial spaces. Rahway is sometimes confused with nearby New Jersey locations associated with Tesla’s later work, but this early lighting venture was specifically based there. The company eventually collapsed after investors shifted their focus toward operating an electric utility.