Tesla (TSLA) said Tuesday it was expanding its manufacturing capabilities with the acquisition of Grohmann Engineering.
The Prum, Germany-based engineering company will become known as Tesla Grohmann Automation and is expected to help Tesla accelerate its growth rate.
Several critical elements of Tesla's automated manufacturing systems will be designed and produced in Prum in a bid to make the company's factories the most advanced in the world.
"Combined with our California and Michigan engineering facilities, as well as other locations to follow, we believe the result will yield exponential improvements in the speed and quality of production, while substantially reducing the capital expenditures required per vehicle," Tesla said in a statement.
Tesla CEO Elon Musk said this will be the "first acquisition of significance in our whole history," TechCrunch reported. Musk said on a call discussing the deal that Grohmann was its "first choice."
Tesla shares rose 0.2% in premarket trading on Tuesday. It closed on Monday at $193.21, a gain of 1.39%.
Tesla is expected to add more than 1,000 advanced engineering jobs in Germany over the next two years.
The deal is contingent on clearance from regulators and is expected to be completed in early 2017.