BUSINESS

Tesla makes 1st acquisition, adds tooling company

Staff Writer
Columbus CEO

DETROIT (AP) — Electric car maker Tesla Motors has made its first acquisition, adding a Michigan tool-and-die maker as it ramps up to build more models.

Tesla says it purchased Riviera Tool LLC of Cascade Township. The company makes tools that stamp out metal parts.

The price was not disclosed.

Tesla says the purchase will help it build new plastic parts and support new metal-forming development.

Kelley Blue Book analyst Karl Brauer says he expects more acquisitions by Tesla.

Currently the Palo Alto, California-based Tesla sells only the Model S sedan, but it plans to start selling the Model X SUV by the end of September. A $35,000 car is coming in late 2017. Tesla is predicting that it will sell 55,000 vehicles this year.