Tesla Enhances Their Brand with Latest Purchase

Tesla has been focused on solidifying the merge with SolarCity Corp. While waiting for an approval from their investor, the futuristic carmaker delivered an exciting announcement. To everyone’s surprise, Tesla announced that they were purchasing an engineering firm that is located in Germany. This business move will accelerate and automate the company’s production in their factories.

The company’s leader, Elon Musk announced in a blog that Tesla was planning to purchase Grohmann Engineering. Founded by Klaus Grohmann, the engineering firm will be key in helping Tesla reach their goal as being what Musk calls a “machine that builds the machine”. Musk wants to go beyond the norm in standard vehicle production. Grohmann Engineering is based in Prum, Germany and specializes in manufacturing techniques that are highly automated.

Tesla went on to say, “Accelerating a sustainable energy future is only possible with high-volume factories. They allow us to manufacture high-quality products with economies of scale, making them more affordable and accessible to the world.”

The company has not released any information about the financial terms between the two companies. It is known that Tesla plans the rename the engineering firm to Tesla Grohmann Automation, once the deal is final. They have plans that they will complete the new venture by early 2017. Before this deal can become official, it has to be approved by regulators in Germany and other locations.

With their eyes on multiplying their production, from below 100,000 units to 500,000 units, it is necessary that Tesla has manufacturing expertise. Their current plant, located in Fremont, California, is producing less than 100,000 units. Musk believes they’ll reach 500,000 by 2018. This rate is expected to double in 2020, which will been an annual production of 1 million units. This expansion will set Tesla amongst some of the fastest growing companies in the automotive industry.