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Detroit Free Press Reports Tesla Makes First Acquisition In Company History

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Detroit Free Press Reports Tesla Makes First Acquisition In Company History
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Elon Musk and the state of Michigan have had a somewhat contentious history.

However, the electric car revolutionary appears to be making a big move for his company in the birthplace of the automobile.

The Detroit Free Press reported Wednesday evening that Tesla Motors Inc (NASDAQ: TSLA) will acquire Riviera Tool, a Grand Rapids auto supplier. This marks the first acquisition for Tesla since it was founded in 2003.

According to the Free Press, Riviera "makes stamping parts that are shipped to Tesla's assembly plant in Fremont, Calif., [and] has about 100 employees. Tesla is expected to retain those workers and eventually rename the operation Tesla Tool & Die, said the source who is not authorized to speak publicly about the transaction."

Earlier on Wednesday, Tesla posted an adjusted loss of $0.36 per share in its latest quarter and adjusted revenue climbed 55 percent to $1.1 billion. Analysts expected a loss of $0.50 per shares on $1.04 billion in revenue.

On the company's conference call, Musk touted the anticipated Tesla SUV, dubbed the Model X, saying, "We have a lot of customers that have been waiting a long time. This is really a great car. It handles like a sports car even though it's an SUV. The performance is surreal. Nothing else is comparable."

In the after-hours session, Tesla shares traded at $233.60, up 1.4 percent. Shares are up more than 9 percent over the past 52 weeks.

Posted-In: Detroit Free Press Elon MuskNews Rumors M&A Top Stories After-Hours Center Tech Best of Benzinga

 

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