Tesla buys automation equipment maker Perbix

A Tesla Model X is photographed alongside a Model S at a Tesla electric car dealership in Sydney
A Tesla Model X is photographed alongside a Model S at a Tesla electric car dealership in Sydney, Australia, May 31, 2017. REUTERS/Jason Reed

November 7, 2017

(Reuters) – Electric car maker Tesla Inc <TSLA.O> said on Tuesday it agreed to buy privately held Perbix Machine Co Inc, which designs automated manufacturing equipment.

Financial terms of the deal were not disclosed.

Minnesota-based Perbix has been a Tesla supplier for nearly three years and an acquisition by the carmaker would allow it to bring more parts production in house. http://bit.ly/2hilfQb

“With the acquisition of Perbix, Tesla further advances its efforts to turn the factory itself into a product – to build the machine that makes the machine,” Tesla said on its website.

Tesla Chief Executive Elon Musk has insisted on performing much of the work within the company, one of the reasons Tesla has been continually pushing back production targets for the Model 3 sedan.

Tesla makes many of its auto parts, including car seats, which big automakers usually farm out to specialists.

(Reporting by Arjun Panchadar in Bengaluru; Editing by Bernard Orr)