Tesla Motors has reached a deal to acquire a Michigan-based auto supplier Riviera Tool. The acquisition is seen as a significant ‘first’ for Tesla.
Riviera Tool, which makes stamping parts that are shipped to Tesla’s assembly plant in Fremont, Calif., has about 100 employees. Tesla is expected to retain those workers and eventually rename the operation Tesla Tool & Die, said the source who is not authorized to speak publicly about the transaction.
Tesla says the purchase will help it increase production as it introduces more models. Riviera can help with building of new plastic parts and new metal-forming development, a spokeswoman said.
News of the acquisition comes hours after the company reported a $154 million loss in the first quarter because of heavy spending related to growing the company and launching its Model X SUV.
Currently the Palo Alto, California-based company sells only the Model S sedan, but it plans to start selling the Model X SUV by the end of September. A $35,000 Model 3 is coming in late 2017. Tesla is predicting that it will sell 55,000 vehicles this year.