Tesla Expands German Footprint Despite Consumer Backlash Against MuskTesla Expands German Footprint Despite Consumer Backlash Against Musk

Tesla’s German subsidiary will take over some sections of an automotive technology supplier that has recently gone bust.

The battery-electric-vehicle maker says it will acquire some parts of the Manz group, including more than 300 employees at its site in Reutlingen in southwest Germany.

This expands Tesla’s footprint in Germany and supplements its vehicle manufacturing plant near Berlin, Reuters reports.

Manz's insolvency administrator and Tesla Automation, a subsidiary of the U.S. company, have signed a purchase agreement. The parties agreed not to disclose a transaction price and completion of the deal is subject to merger control law.

Tesla Automation, which specializes in the construction of special-purpose machines at three German locations, plans to acquire movable tangible assets and use Manz's existing property. Approximately 100 employees will lose their jobs and not be transferred to Tesla Automation, according to Manz.

The move will be seen as a bold one against the backdrop of consumer backlash against the Tesla brand following CEO Elon Musk’s vocal support for the far-right AfD political party.

Sales data for new cars sold in Germany in January reveal a 60% slump in registrations for Tesla cars at the same time BEV sales in the country rose 13.7% year-on-year.

Manz’s insolvency administrator, Martin Mucha, says the structured sales process for other assets was moving forward. He adds, “We are currently holding promising talks with several interested parties.”