Tesla has agreed to purchase assets from the troubled German machinery manufacturer Manz. As part of the deal, Tesla Automation, a division of the US electric car manufacturer, acquires facilities and employees at the Manz site in Reutlingen. Financial details were not disclosed. Manz had filed for bankruptcy due to the collapse of the European battery market.

The step comes as Tesla struggles with massive sales declines in Europe. According to data from the industry association ACEA, the sales of Tesla's electric cars dropped to only 9,900 vehicles in January—a decrease of 45 percent compared to the same month last year. Particularly in Germany, where Tesla operates a Gigafactory in Grünheide near Berlin, registrations fell by nearly 60 percent.

Market observers attribute the sales slump to several factors: customers may be waiting for the new Y-model, additionally, higher EU tariffs on Tesla vehicles imported from China are weighing on business. Elon Musk's involvement in local politics is also causing discontent. After the Tesla CEO recently supported the right-wing AfD, the brand's image has wavered among some European buyers.

Nevertheless, the segment of electric cars on the continent is growing significantly - by 37 percent in January. Competitors like the Chinese state-owned company SAIC Motor increased their sales here by more than a third. Nonetheless, Tesla remains a dominant player in the global electric car business, which could be further solidified by the acquisition of German Manz technology, according to analysts.