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Tesla makes its move on Europe

In a move that perhaps gives the indication that Tesla is about to set its sights on European penetration, the clean-energy automobile manufacturer has announced they have agreed a deal to 

acquire German manufacturing-technology specialist, Grohmann Engineering GmbH. The acquisition is expected to be finalised in early 2017. 

The equipment maker, led by founder and Chief Executive Officer Klaus Grohmann, will be developed into a new German automation division that will create about 1,000 jobs, the Palo Alto, 

California-based company said Tuesday in a statement. Tesla expects to complete the purchase by early 2017. Financial terms weren’t disclosed. 

CEO of Tesla, Elon Musk, has said he intends on releasing the Model 3 in the latter stages of 2017. The Model 3 is going to be the first ‘mass market’ car produced by Tesla and is going to set 

consumers back by $35’000 before government incentives. In addition to helping Tesla improve efficiency and engineering, the deal “may be an initial foothold for future expansion in Europe,

” Ben Kallo, an analyst at Baird Equity Research, wrote in a report to clients. Tesla rose 1.4 percent to $195.94 at 1:30 p.m. in New York. The stock dropped 19 percent this year through Monday, 

valuing the company at about $29 billion.

Currently Tesla has a strong foothold in the United States and a constantly increasing share of the Chinese market; however, prior to this deal they were yet to show a desire for the European 

market, something this move suggests will begin to happen now. 


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