Elon Musk’s Tesla will acquire parts of the insolvent German high-tech parts manufacturer Manz AG, including more than 300 employees at its Reutlingen facility, the German company announced on Tuesday.
The deal expands Tesla’s presence in Germany, where it operates a manufacturing site near Berlin.
Manz’s insolvency administrator and Tesla Automation GmbH, a German subsidiary of the automaker, signed the purchase agreement on Monday. The transaction, which includes movable tangible assets and the use of Manz’s property, remains subject to merger control laws.
The financial terms were not disclosed.
Tesla Automation, which specializes in special-purpose machine construction across three German locations, will integrate over 300 Manz employees. However, approximately 100 workers will not be transferred as part of the acquisition.
Manz’s insolvency administrator, Martin Mucha, confirmed that discussions for selling other company assets are ongoing. “We are currently holding promising talks with several interested parties,” Mucha said in a statement.
The acquisition comes as Tesla faces challenges in Germany, including a nearly 60% decline in vehicle sales in January compared to the previous year. Musk’s endorsement of Germany’s far-right AfD party has also sparked political controversy, with mainstream parties distancing themselves from the group due to its extreme positions.
