Tesla has entered into an agreement to acquire Grohmann Engineering, an automotive manufacturer in Germany, which will become Tesla Grohmann Automation, after increasing its output target to 500,000 cars per year by 2018.

This is Tesla’s first venture into manufacturing in Europe, having manufactured its electric vehicles solely in the US previously.

Tesla claims that accelerating a sustainable energy future is only possible with high-volume factories, allowing it to manufacture high-quality products with economies of scale, making products more affordable and accessible to the world.