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Tesla has agreed to purchase specific assets from Manz AG, a German automation systems supplier currently undergoing insolvency proceedings. The acquisition, announced on February 25, 2025, involves Tesla Automation, a subsidiary of Tesla Inc., taking over Manz's Reutlingen site in southwestern Germany.
The deal includes the acquisition of movable tangible assets and the transfer of over 300 employees from Manz to Tesla Automation. However, approximately 100 Manz employees will lose their jobs and not be transferred as part of the agreement.
Financial details remain confidential, with both parties agreeing not to disclose the purchase price. The completion of the transaction remains subject to merger control law approval.
Manz AG filed for insolvency in December following a sustained period of market decline that resulted in dropping sales and escalating losses. The company had invested significantly in battery cell production technology before its financial troubles began.
"We are currently holding promising talks with several interested parties," said insolvency administrator Martin Mucha in a statement, indicating that the structured sales process for other Manz assets continues to move forward.
This acquisition expands Tesla's presence in Germany, where it already operates a manufacturing site near Berlin. Tesla Automation specializes in the construction of special-purpose machines at three German locations.
The deal comes at a challenging time for Tesla in the German market. According to Reuters, Tesla sold almost 60% fewer cars in Germany in January 2025 compared to the same period last year. This decline follows controversy surrounding CEO Elon Musk's endorsement of Germany's far-right AfD party, which mainstream parties have refused to work with due to its extreme positions.
The German acquisition represents a strategic move for Tesla despite these challenges. By acquiring specialized automation systems expertise and established facilities, Tesla strengthens its manufacturing capabilities in Europe's largest economy.
For Manz employees being transferred, the acquisition offers continued employment opportunities at a time when the company's financial struggles had created significant uncertainty about their future.
