Controversial carmaker Tesla (TSLA) made an announcement this morning that surprised analysts and investors alike but in a good way this time. The stock rose by more than 2% during morning trading and was still up about one percentage point in the late afternoon. However, the company remains a risky play for investors?
Tesla announced that it is purchasing a small engineering company, Grohmann Engineering, to help the company automate and accelerate its factory production lines.
Grohmann, based in Germany, focuses on highly automated manufacturing and will be renamed Tesla Grohmann Automation.
Tesla's CEO, Elon Musk, has spoken of revolutionizing car production with a "machine that builds the machine"... basically, a fully automated car factory. (Musk has also remarked that the employees whose jobs will be replaced by worldwide automation should receive a form of universal stipend.)
"As the machine that builds the machine, our factories are so important that we believe they will ultimately deserve an order of magnitude more attention in engineering than what they produced," Tesla stated.
CEO Musk has set a lofty pace of 500,000 units to by produced annually by 2018, doubling to one million vehicles by 2020. Currently, Tesla currently cranks out fewer than 100,000 vehicles per year. If Tesla were able to achieve this rate, it would mark one of the swiftest expansions in automotive history.
Tesla Grohmann Automation will become part of Tesla's new Germany-based operations, Tesla Advanced Automation Germany. And although the company declines to offer specific insights into any other developments in that country, Tesla hints at more to come. "We expect to add over 1,000 advanced engineering and skilled technician jobs in Germany over the next two years," the company stated on Tuesday.