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Tesla Buys Michigan-Based Auto Supplier

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Tesla now has a manufacturing presence in Michigan. 

The California-based company has made its first acquisition, buying Grand Rapids, MI based Riviera Tool which produces stamping parts that are used in Tesla’s assembly plant in Fremont, California. The company employs roughly 100 people, all of which Tesla plans to retain, while plans to add more employees are in the works.

SEE ALSO: Tesla Reports $154M Loss in Q1 2015

The company will be likely be renamed Tesla Tool & Die, although Tesla says it will continue to work with other tool and die makers. The brand is ramping up to try and reach its lofty 2015 volume goals. This plan includes the launch of the Model X crossover and increased production of the Model S sedan.

Tesla CEO Elon Musk has admitted that the logistics of ramping up production for a global product has involved even more hurdles than he expected.

[Source: Detroit Free Press]

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1 Comment

smartacus says:

Why did they buy a supplier when they just got finished posting such a huge and heavy hemorrhaging loss?