Elon Musk acquires bankrupt company to fulfill “cheap Tesla” promise

Elon Musk acquires bankrupt company to fulfill “cheap Tesla” promise
Elon Musk acquires bankrupt company to fulfill “cheap Tesla” promise
The American automobile company Tesla, headed by billionaire Elon Musk, acquired a German battery company that was on the verge of bankruptcy, in order to realize the dream of a “cheap car.”

According to Reuters, Tesla agreed to acquire German company ATW Automation, which specializes in assembling car batteries.

ATW Automation, a subsidiary of the Canadian group ATS Automation Tooling Systems, was on the verge of liquidation due to declining demand.

The company announced on September 25 that it had signed an agreement to sell assets and transfer employees in one of its subsidiaries in Germany, without disclosing further details. The deal is expected to partially reduce the costs incurred by the company.

The German unit – located in West Germany – has about 120 employees and has launched more than 20 battery production lines for international car companies.

Tesla, led by billionaire Musk, is building an electric car and battery factory in the German capital, Berlin. It will be the company’s first plant in Europe to produce compact electric sports cars, according to Forbes.

And last September, during the “Battery Day” event, Musk presented his plan to build an electric car worth $ 25,000 within three years and cut battery costs in half.

As well as making electric cars, Tesla has a dedicated battery division dedicated to rechargeable power cells for its cars, and the company also has storage packages for electricity that can be used in homes, businesses or disasters.

Tesla Corporation produces batteries at its plants in Tesla in the United States and China, in addition to the plant being built in Germany.

Panasonic manufactures lithium batteries for Tesla models at the company’s plant in Nevada, and some analysts believe that Musk is eager to increase battery supplies and is interested in more control over production.

Tesla expects a significant shortfall in battery supplies in 2022 and beyond, even with increased purchases, unless action is taken in this regard, according to Musk.

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