Tesla saves German engineering company Manz from bankruptcy

US carmaker Tesla of billionaire Elon Musk through its subsidiary Tesla Automation is buying part of the assets of German company Manz, which filed for bankruptcy in December 2024.

Here's What We Know

Manz's manufacturing facilities and 300 employees will come under the management of Tesla Automation. Another 100 or so employees will not fall under the deal, but they will be offered a special social programme.

The contract has already been signed, but the companies have not disclosed the purchase price. The funds will be used to pay off debts. The Reutlingen plant will be Tesla Automation's fourth site in Germany.

Why did Manz go bankrupt?

Manz specialises in battery and auto component engineering, but its expectations for growth in the electric car market were not met. The company made €250m in 2023, but then continued to operate in the negative.

According to the company's December figures, Manz employs a total of 1,200 people, of which 400 are in Germany. Former shareholders will likely receive no compensation after the asset sale.

What does this mean for Tesla?

Tesla Automation manufactures specialised equipment for Tesla factories. The purchase of Manz will help strengthen Tesla's position in Europe and expand its manufacturing capabilities. So while some European suppliers are struggling to cope with the crisis in the electric car industry, Tesla continues to buy up assets and expand its presence in Germany.

Meanwhile, Tesla itself is facing a sharp drop in sales in early 2025. According to preliminary data, electric car deliveries have fallen to their lowest level since 2022. The company attributes this to the Model Y refresh, as customers may delay purchases while waiting for the new version. However, analysts believe that other factors, such as Elon Musk's personality, controversial statements and unpredictable decisions, are also influencing the situation.

Source: t-online