By Sam RiegelPublished May 17, 2017 1:06PMET: Tesla has raised $1.7 billion from the sale of its KrogStreet retail and manufacturing company.
The company said it has sold 2.7 million cars since its IPO in May 2017.
Tesla expects its revenue from its retail business to grow to $3.5 billion by 2021.
In a press release, Tesla said it is pleased to have reached an agreement to acquire Krog, which is a leading supplier of consumer electronics products to Tesla customers, including for the electric vehicles that power the Model S and Model X.
The Krog Group is focused on providing high-quality consumer electronics solutions that deliver high-performance consumer electronics to Tesla, with a focus on the automotive industry, automotive supply chain and retail markets, Tesla CEO Elon Musk said in the release.
Tesla said it expects to add another 100,000 retail jobs over the next 12 months.
Krog Street, which has been in business since 1972, provides high-speed manufacturing and logistics solutions for Tesla.
The deal will create Tesla’s second-largest retail and supply chain, according to the company.
Kros, which makes parts for Tesla vehicles, will retain full control of its assets and will remain independent.
Kogus salespeople will continue to be part of the Kogus operations.
Korgus has a history of success with its customers, Musk said.
The company has won numerous customer loyalty awards, including Best of Show awards for the Model X SUV.
Tesla also announced a $1 billion capital raise for the company on Wednesday, adding more than $1 trillion in capital for the next six years.