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Electric car manufacturer Tesla Motors has acquired Riviera Tool, a Michigan-based auto supplier for an undisclosed amount.
This is one of the first exclusive-auto deal made by Tesla in recent times and analysts are of the wide opinion that the futuristic company will make many more such acquisitions. Riviera makes stamping parts that are shipped to Tesla's assembly plant in Fremont, California and has about 100 employees. The company is expected to retain the workers and the general operations. It will eventually rename the operation Tesla Tool & Die, according to a report in USA Today. Meanwhile, Tesla also has plans to continue adding jobs at Riviera, which is located near the Gerald Ford International Airport.
The deal is crucial as it could improve the efficiency of its manufacturing processes. The company is currently facing immense pressure to expand production of its Model S luxury electric sedan and is expected to begin production of the all-new Model X luxury electric crossover in the third quarter. The company has already publicly admitted that there are many challenges involved in going into a mass production scale, especially in relation to the lithium ion batteries, which are crucial for the electric cars.
Meanwhile, Tesla reported a loss of $45 million, or 36 cents a share, on an adjusted basis, better than the consensus estimate of 50 cents a share. The loss came on $1.1 billion in revenue, which was slightly better than expected. Tesla delivered 10,045 cars during the quarter and predicted it would be able to produce 12,500 in the second quarter, which is a promising start for the company this year.
This is one of the first exclusive-auto deal made by Tesla in recent times and analysts are of the wide opinion that the futuristic company will make many more such acquisitions. Riviera makes stamping parts that are shipped to Tesla's assembly plant in Fremont, California and has about 100 employees. The company is expected to retain the workers and the general operations. It will eventually rename the operation Tesla Tool & Die, according to a report in USA Today. Meanwhile, Tesla also has plans to continue adding jobs at Riviera, which is located near the Gerald Ford International Airport.
The deal is crucial as it could improve the efficiency of its manufacturing processes. The company is currently facing immense pressure to expand production of its Model S luxury electric sedan and is expected to begin production of the all-new Model X luxury electric crossover in the third quarter. The company has already publicly admitted that there are many challenges involved in going into a mass production scale, especially in relation to the lithium ion batteries, which are crucial for the electric cars.
Meanwhile, Tesla reported a loss of $45 million, or 36 cents a share, on an adjusted basis, better than the consensus estimate of 50 cents a share. The loss came on $1.1 billion in revenue, which was slightly better than expected. Tesla delivered 10,045 cars during the quarter and predicted it would be able to produce 12,500 in the second quarter, which is a promising start for the company this year.
