11/23/2020

Tesla hopes to fix Model 3 bottlenecks with its fourth acquisition

Luxury electric carmaker Tesla this week acquired a small, Minnesota-based factory automation company, in hopes of fixing unexpected bottlenecks on its Model 3 production line.

Perbix launched in 1976 and employs 150 people in a suburb north of Minneapolis. Tesla said it’s worked with the engineering firm for nearly three years, on a number of projects on the production line at its Fremont car factory and its Gigafactory in Reno. Terms of the deal were not immediately released.

The acquisition comes as Tesla struggles with ramping up production of the Model 3, which starts at $35,000. CEO Elon Musk had expected the Palo Alto-based company to produce 1,500 cars in the third quarter and as many as 20,000 cars per month by the end of the year.

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