Tesla has grown tremendously in recent years. Now, the company is ready to make some significant acquisitions. According to the latest reports, Tesla acquired Grohmann Engineering — a German company that specializes in what is known as automated manufacturing.
Tesla's First Big Acquisition
Founder Klaus Grohmann is expected to join Tesla and head a new division at the company. We understand this new unit will be called Tesla Advanced Automation Germany. The acquisition and the new division is all about helping Tesla increase its effectiveness and automation when it comes down to manufacturing.
This should be viewed as the first big acquisition from Tesla, and as the company grows, we should expect a lot more in the future.
"After increasing our output target to 500,000 cars per year by 2018, we began searching for the best engineering talent in automated manufacturing systems," according to the Tesla blog. "Today, we are excited to announce that Tesla has entered into an agreement to acquire Grohmann Engineering, a world-renowned engineering company in Prüm, Germany, which will become Tesla Grohmann Automation."
Both Grohmann Engineering and Tesla have been working together for quite some time, more than a year to be precise. Reports say that this move is a mutual desire from both companies to work together more closely than before. How well everything will work out in the long run is left to be seen;however, seeing as they have partnered on projects before, we expect this binding partnership to continue down a smooth path.
Why Did Tesla Decide To Invest In Germany?
CTO of Tesla, JB Straubel, says the pool of engineering talent is quite high in Germany, and that's one of the reasons Tesla chose to invest in the country. Furthermore, several of Tesla's automated systems will be done within the company, which should cause for "exponential improvements in the speed and quality of production.
Tesla reported that to-date, it had increased its output by 400 percent at its Fremont Factory. The company is expecting this acquisition to accelerate growth in that area as time goes by.
Bear in mind, this acquisition is not yet final until it has been cleared by German regulators.
Tesla has been achieving a lot since the company came to be; however, owners of its vehicles won't be allowed to achieve anything with either Uber or Lyft. Yes, you've got that right, Tesla has decided to ban drivers of its vehicles for working for the top ride-sharing companies in the country.
It should be noted that all Tesla electric car will come with the required hardware for self-driving, and will be put to use once the technology is up and ready.