Tesla has bought Perbix, an automated machine maker, to improve its manufacturing process as it struggles to boost Model 3 production. Perbix has been a Tesla supplier for nearly three years. Bloomberg reports that a Tesla spokesman declined to comment regarding the terms of the deal. However, it did learn via a regulatory filing that Perbix’s president, James Dudley, will received around $10.5 million in Tesla stock.
Last week, Tesla CEO Elon Musk revealed that adopting a highly automated manufacturing system was one of the issues surrounding the Model 3’s slow start in production. The company also pushed back projections for when it will begin producing 5,000 cars per week by around three months to the end of the first quarter of 2018. Tesla will eventually boost weekly output to 10,000 units, but before doing so, it will optimize its automation and minimize spending.
Perbix is the latest manufacturing specialist purchased by Tesla. Almost a year ago, it bought Grohmann Engineering to boost production and cut manufacturing costs. The acquisition of Perbix also means that Tesla will increase its presence in Minneapolis, Minnesota where Perbix is based, a spokesman told Bloomberg.
By the third quarter of 2017, Tesla only built 260 Model 3s, falling short of its target, which was 1,500 units. Last week, Tesla reported its third quarter results, which included a $2.92 loss per share as well as an 18-percent increase in combined deliveries for the Model S and Model X worldwide compared to the second quarter.