Tesla Motors, the electric car maker, has been bought by an electricity utility, Grand Rapids-based Electrician Mobile Al, for $5.8 billion.
The sale is the second acquisition of an electric carmaker by a large US power utility.
The deal is a cash-and-stock deal that will allow the company to keep operating its two factories and to continue to produce and sell electric cars, including the Tesla Model S, the company said.
Tesla said it would keep its electric car factory in Fremont, California, where it started production in 2009.
In addition to the acquisition, the new owners will continue to operate Tesla’s Fremont factory and will also retain all existing employees, it said.
It’s unclear how much the two parties will pay the new owner, but it’s believed to be in the $2.5 billion range, Tesla said.
The purchase of the electrician and the other new owners comes as Tesla struggles to find a buyer for its Fremont plant, which employs approximately 200 people.
The company is currently looking for a buyer that could give it access to additional capital to help the plant stay operational.
Tesla has struggled to find financing and keep production at its Fremondons plant, where its electric cars have been a keystay.
The Tesla Model 3, which the company is now preparing to introduce in 2021, has also struggled to meet demand as it’s not a mass-market product.