Tesla announces $1.3B purchase of luxury cars
Tesla has announced a $1 billion acquisition of luxury vehicles from Japan’s Nissan Motor Co., a deal that will give the electric carmaker access to some of the most expensive brands in the world.
The announcement is the latest example of Tesla expanding its automotive footprint in a country where the company is increasingly known as a maker of high-tech luxury goods.
Tesla also announced that it will buy Japanese luxury brand Shizuoka Automotive Co. for $3.3 billion.
Nissan said the deal will create a new, more than 1,000-employee luxury brand in the U.S. It also said the acquisition will help accelerate Nissan’s “long-term growth and accelerate the company’s future success.”
The purchase comes amid growing competition from other electric vehicles and as the world is entering a period of rapid technological innovation.
Tesla’s announcement comes just months after Nissan launched a $10,000 electric SUV, the Leaf, in Europe.
The Leaf is being built at a factory in Fremont, California, and is expected to go on sale in 2019.
The acquisition will give Tesla access to a growing array of luxury brands in Asia, the Middle East, Africa, Latin America and Europe.
“The Nissan brand will bring Nissan’s unparalleled expertise in luxury vehicle design and development to the U of A and to our customers worldwide,” Tesla CEO Elon Musk said in a statement.
“We look forward to developing a relationship with Nissan that will make the future of luxury driving and transportation more affordable and fun.”
The acquisition is part of Tesla’s wider expansion into the luxury car market, where it has sold over 300,000 Model S and Model X electric cars in the first quarter.
Tesla said it is adding luxury brands to its global luxury portfolio.
It said the Nissan acquisition will also give the company access to luxury brands that have previously been sold to other automakers.
The new acquisition will create an automotive luxury brand, known as Nissan Luxury Cars, which Tesla said will create 2,500 new jobs in the United States.
The brand will also offer consumers the opportunity to “experience the most luxurious and technologically advanced products on the market, including a wide range of premium cars, trucks and SUVs.”
Tesla has also acquired luxury-vehicle brands in Europe, Africa and South America.
The company is currently in talks with luxury brand Renault SA for the purchase of Renault’s luxury brand Lada.
The deal is valued at about $2 billion, according to The Wall Street Journal.
Nissan and Tesla declined to comment.
Tesla is also expanding into luxury vehicle production, including the acquisition of Jaguar Land Rover, which has more than 300 dealerships.
Nissan has about 3,400 employees in its U.K. headquarters.