One way or another, Tesla was bound to get into Michigan.
And even though you can’t directly buy a Tesla vehicle in that state, the company has bought a tool-making company there. As the Detroit Free Press reports, Tesla, in its first acquisition ever, has purchased Riviera Tool in Grand Rapids. Riviera makes stamping parts that Tesla uses in its automotive plant in Fremont, Calif.
“Tesla views the deal as crucial to improving the efficiency of its manufacturing processes,” states the Detroit Free Press. “The company is facing immense pressure to expand production of its Model S luxury electric sedan and is expected to begin production of the all-new Model X luxury electric crossover in the third quarter.”
The news has helped Riviera Tool, too. As Yahoo Finance reports, Riviera, formerly a penny stock, saw its stock go up 10,000 percent after traders heard of the acquisition.
Riviera, the Detroit Free Press reports, has about 100 employees and that its sources say that Tesla will keep all employees — and expects to add more — and “continue doing business with other stamping parts suppliers” that use Riviera.
It’s the first footprint Tesla has in the state of the Big Three automakers, GM, Ford and Fiat Chrysler. Last fall, Gov. Rick Snyder signed a law that prohibited Tesla from directly selling vehicles in the state. Read more about that over at the Wall Street Journal.
Given Tesla’s recent announcement of the home battery, and that giant battery plant in Nevada, it seems a bit shortsighted to shut out an innovative company that’s investing in American labor force and talent, no?
Well played, Tesla. Well played.
