Tesla just bought a small Minnesota company - Bring Me The News

Tesla just bought a small Minnesota company

The owner of the Brooklyn Park company has received $10.5 million in Tesla stock.
Author:
Publish date:
Image placeholder title

Electric car maker Tesla has bought a company based in Minnesota that makes automated parts.

Perbix, which has its facility in Brooklyn Park, has been supplying Tesla with automated machines that are used in the manufacturing process for the past three years.

Tesla is currently plagued by mass production issues which is limiting the amount of its new Model 3 sedans it's producing, with CEO Elon Musk hinting this week that "automation challenges" were one of the reasons behind it, Bloomberg reports.

It's now taken the step of buying Perbix for an undisclosed fee, though Bloomberg notes that Perbix president James Budley is expected to receive around $10.5 million in Tesla stock.

Perbix employs around 150 people in Brooklyn Park, with the Star Tribune reporting that Tesla is keen on adding more people to that number. 

Perbix has been in business for 41 years and describes itself as a major supplier to Fortune 500 companies.

Reuters reports Tesla's acquisition will allow it to bring more of the production process in house,.

Perbix was one of the companies hired to accelerate the factory automation process three years ago, Electrek reports.

Next Up

Related