Tesla Acquires Automation Company to Mitigate Delays in Production

Tesla is acquiring Perbix, a private machining company, possibly in an attempt to mitigate the distress that the car manufacturer announced last week when it imputed a quarterly loss on production “bottlenecks” amounting to $619 million. Perbix has been the supplier of Tesla of parts for almost three years. However, the said acquisition will enable the company to manufacture more parts in-house, helping it fulfill its ambition to “build the machine that makes the machine.”

Unfortunately, at the moment, Tesla is having a hard time to build any machines, announcing alongside the company’s earnings report that it would not be able to meet its target of producing 5,000 Model 3 sedans per week during this year. The amount that Tesla paid Perbix for the acquisition has not been revealed. However, financial filings reveal that James S. Dudley, the owner of Perbix, was offered with stocks of Tesla amounting to more than $10 million worth. Perbix is an expensive solution to the issues of Tesla. However, t the price faints in comparison to the amounts that Tesla will lose if the company does not get on top of its problems regarding production.