Tesla Motors Buys German Engineering Firm

Tesla Motors Inc. (NASDAQ: TSLA) is preparing for mass production of the model 3, and to become also a major energy company if the merger with SolarCity Corp. (NASDAQ: SCTY) is approved by the term of directors of Tesla. To cope with the all the pressures the company has to deal with, Tesla announced Tuesday that it will acquire a German engineering firm to help automate and accelerate production at its factories.

The electric car manufacturer said in a statement, “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… As the machine that builds the machine, our factories are so important that we believe they will ultimately deserve an order of magnitude more attention in engineering than what they produce.”

Tesla’s challenge over the next two years is to significantly increase its manufacturing capabilities. From less 100,000 unites produced to about 500,000 by 2018. The plan is to then double to a 1 million unite production annually by 2020. 

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