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Tesla Automation

German industrial automation and manufacturing-engineering company owned by Tesla, Inc.

Last updated August 26, 2026

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Overview

Tesla Automation GmbH is a German engineering and industrial-automation company headquartered in Prüm, Rhineland-Palatinate. The business was originally established by Klaus Grohmann and became known as Grohmann Engineering before being acquired by Tesla, Inc. in January 2017. Its work centers on designing and building automated production equipment, robotics, and manufacturing systems rather than selling consumer products under a conventional retail brand. The company’s historical capabilities span several technically demanding industries. Its equipment portfolio has included production machinery for microprocessors and memory chips, airbag sensors, power-steering controllers, automotive door and roof seals, lithium-ion battery cells and modules, and other electronic or vehicle components. After joining Tesla, the company became particularly important to Tesla’s effort to develop and scale automated production processes for electric vehicles, batteries, and electronics. Its activities include the development and manufacture of robotics and factory systems used in battery and electronics production. The company traces its origins to 1963, when Klaus Grohmann founded the engineering business. Its headquarters moved to Prüm in 1983. In November 2016, Tesla Motors agreed to acquire the privately held company. At that time, Klaus Grohmann held 74.9 percent and Deutsche Beteiligungs AG held 25.1 percent. The transaction closed on 3 January 2017, when the business had approximately 800 employees, and it was subsequently operated as Tesla Automation. The acquisition created strategic and organizational tensions. Tesla wanted the business to concentrate on its own manufacturing requirements, including the Model 3 program, while Grohmann Engineering had historically served multiple industrial customers. According to the company’s documented history, Klaus Grohmann left in April 2017 after a dispute with Tesla chief executive Elon Musk. The decision to stop or reduce work for customers such as BMW and Daimler also prompted concern among employee representatives about customer concentration, wages, and long-term employment security. Tesla offered employees a combination of pay increases, stock options, and a one-time payment, and an agreement on a competitive compensation structure was reached with union representatives in October 2017. Tesla Automation operates from its Prüm base and has branch locations in Neutraubling, Neuwied, and Reutlingen. It also cooperates with universities through dual-study programs in mechanical engineering and robotic process automation. Its vocational and technical training activities cover areas including technical product design, industrial mechanics, CNC operation, construction technology, information technology, mechatronics, and industrial electronics. In early 2025, the subsidiary agreed to acquire approximately 300 employees and selected assets of Manz, a battery-production-equipment company in Reutlingen. This move broadened Tesla Automation’s access to battery-manufacturing expertise and equipment capabilities. The company’s strategic role remains closely tied to Tesla’s manufacturing infrastructure, especially automation for batteries, electronics, and electric-vehicle production.

History

Tesla Automation originated with an engineering business founded by Klaus Grohmann in 1963. The company later developed into Grohmann Engineering, a specialist in automated production systems for technically complex industries. In 1983, its headquarters moved to Prüm in Rhineland-Palatinate, where the business remains based. Before its Tesla ownership, Grohmann Engineering supplied automation and production machinery to customers in several sectors. Its documented portfolio included equipment for semiconductor and memory-chip manufacturing, airbag sensors, power-steering controllers, automotive door and roof seals, lithium-ion battery cells and modules, and other electronic products. This diversification reflected the company’s role as an engineering supplier rather than a conventional product manufacturer. In November 2016, Tesla Motors agreed to acquire the privately held company. Ownership before the transaction was divided between Klaus Grohmann, with 74.9 percent, and Deutsche Beteiligungs AG, with 25.1 percent. The deal closed on 3 January 2017, when the company employed approximately 800 people. Tesla incorporated the business as Tesla Automation and used its engineering and robotics capabilities to support the expansion of automated production for electric vehicles, batteries, and electronics. A May 2017 U.S. Securities and Exchange Commission filing reported a cash purchase price of $109.5 million, together with $25.8 million for a new incentive compensation agreement. The ownership change also altered the company’s customer strategy. Tesla sought to prioritize its own manufacturing programs, including the Model 3, rather than continue serving the full range of outside customers that had supported Grohmann Engineering. The resulting dispute led to the departure of founder Klaus Grohmann in April 2017. Employee representatives raised additional concerns that ending or reducing relationships with customers such as BMW and Daimler could leave the company dependent on Tesla and expose jobs and wages to the performance of the electric-car market. Tesla responded with measures that included a monthly pay increase of 150 euros, stock options with a stated value of $10,000 payable over four years, and a one-time payment of 1,000 euros. In October 2017, Tesla Automation and union representatives reached an agreement on a competitive pay structure. The works council chairman characterized the resulting remuneration as comparable to the applicable industry collective agreement. The company maintains its main site in Prüm and branch locations in Neutraubling, Neuwied, and Reutlingen. In addition to engineering and manufacturing, it supports education and workforce development through cooperation with universities and dual-study programs. Its training fields include mechanical engineering, robotic process automation, technical product design, industrial mechanics, CNC operation, construction technology, information technology, mechatronics, and industrial electronics. In early 2025, Tesla Automation agreed to acquire approximately 300 employees and certain assets from Manz, a Reutlingen-based producer of battery-manufacturing equipment. The transaction indicated continued emphasis on battery-production technology and expanded the subsidiary’s technical and personnel base in a field central to Tesla’s broader manufacturing strategy.

  • 2025

    Agreement involving Manz employees and assets

    [1]

    Tesla Automation agreed to acquire approximately 300 employees and selected assets from Manz’s battery-equipment operations.

  • 2017

    Acquisition completed

    [1]

    Tesla completed the acquisition on 3 January, bringing the German automation business into its manufacturing organization.

  • 2017

    Founder departs

    [1]

    Klaus Grohmann left the company after a dispute with Elon Musk concerning customer work and Tesla’s production priorities.

  • 2017

    Compensation agreement reached

    [1]

    The company and union representatives agreed on a competitive pay structure in October.

  • 2016

    Tesla agrees to acquisition

    [1]

    Tesla Motors announced an agreement to acquire Grohmann Engineering in November.

  • 1983

    Headquarters moved to Prüm

    [1]

    The company moved its headquarters to Prüm in Rhineland-Palatinate, Germany.

  • 1963

    Grohmann engineering business founded

    [1]

    Klaus Grohmann founded the engineering company that later became Grohmann Engineering and, after Tesla’s acquisition, Tesla Automation.

Products and positioning

A specialized engineering and factory-automation provider focused on complex, high-volume manufacturing systems for batteries, electronics, semiconductors, and automotive components. Since its acquisition by Tesla, its positioning has been increasingly connected to Tesla’s internal production and electrification ambitions.

  • Industrial automation

    Battery production systems

    Automated machinery and factory systems for producing lithium-ion battery cells and modules. These systems form part of Tesla Automation’s role in supporting battery manufacturing and the broader electrification supply chain.

  • Industrial robotics

    Robotics for battery and electronics manufacturing

    Robotic equipment used in the production of batteries and electronic products. The systems are designed for repeatable, integrated manufacturing operations rather than standalone consumer use.

  • Electronics manufacturing equipment

    Semiconductor and memory-chip machinery

    Production machinery historically supplied for microprocessor and memory-chip manufacturing, reflecting the company’s earlier work as a diversified industrial-automation provider.

  • Automotive manufacturing equipment

    Automotive-component production equipment

    Automated systems for manufacturing components such as airbag sensors, power-steering controllers, vehicle door seals, and roof seals. These systems illustrate the company’s longstanding specialization in automotive production engineering.

Brand decisions

  • 2025

    Agreement involving Manz employees and assetsM&A

    Background

    Tesla Automation sought to expand its capabilities in battery-production equipment and strengthen its presence in Reutlingen.

    Action taken

    The subsidiary agreed to acquire approximately 300 employees and selected assets from Manz.

    Aftermath

    The agreement expanded Tesla Automation’s personnel and technical base in battery manufacturing equipment.

  • 2017

    Shift toward Tesla-only production prioritiesStrategy

    Background

    Grohmann Engineering had historically worked for multiple industrial customers, while Tesla wanted the subsidiary to focus on its own vehicle and battery-production requirements.

    Action taken

    Tesla discontinued or reduced business relationships with customers outside Tesla, including BMW and Daimler, to prioritize Tesla programs such as the Model 3.

    Aftermath

    The strategy contributed to a dispute with founder Klaus Grohmann and prompted employee representatives to raise concerns about customer concentration and employment security.

  • 2017

    Compensation response to workforce concernsStrategy

    Background

    Employee representatives were concerned about wages and long-term jobs after the company became more dependent on Tesla.

    Action taken

    Tesla offered pay increases, stock options, and a one-time payment, followed by an October agreement with union representatives on a competitive compensation structure.

    Aftermath

    The works council described the agreed remuneration as aligned with the applicable industry collective agreement.

  • 2016

    Tesla acquisition of Grohmann EngineeringM&A

    Background

    Tesla sought additional expertise in factory automation and production engineering for electric vehicles, batteries, and electronics.

    Action taken

    Tesla Motors agreed to acquire the privately held German engineering company in November 2016; the transaction closed in January 2017.

    Aftermath

    The business became Tesla Automation and shifted toward supporting Tesla’s internal manufacturing programs.

    Reported cash purchase price. $109.5 million cash, plus $25.8 million for a new incentive compensation agreement (Reported in a May 2017 SEC filing)

Recent events

  • 2025

    Tesla Automation agrees to acquire employees and assets from Manz[1]

    M&A

    The subsidiary agreed to take on approximately 300 employees and selected assets of Manz, a battery-production-equipment company based in Reutlingen.

  • 2017

    Tesla completes acquisition and establishes Tesla Automation[1]

    M&A

    The acquisition closed on 3 January 2017. The business became part of Tesla’s manufacturing and automation organization and had approximately 800 employees at closing.

  • 2017

    Klaus Grohmann leaves after dispute with Tesla leadership[1]

    Leadership change

    Founder Klaus Grohmann departed after a disagreement with Tesla chief executive Elon Musk over the company’s customer relationships and its focus on Tesla manufacturing programs.

  • 2017

    Tesla Automation reaches compensation agreement with employee representatives[1]

    Other

    Following concerns about wages and employment security after the business shifted toward Tesla work, the company agreed with union representatives on a competitive compensation structure in October.

  • 2016

    Tesla agrees to acquire Grohmann Engineering[1]

    M&A

    Tesla Motors agreed to acquire the privately held German automation specialist, which had previously served customers across the automotive, electronics, and semiconductor industries.

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