Elon Musk’s Tesla Motors Inc. shares jumped more when the Wall Street Journal reported it had acquired AI company Steelseries Engine for $5.9 billion.
Shares of Tesla rose 2.6% to $37.19.
The deal will allow Tesla to create an autonomous driving system for its Model S sedan and Model X SUV, and it also will help Tesla develop the first fully self-driving truck.
“With a deep and well-defined vision for what’s possible with artificial intelligence, Steelsierys Engine will be a tremendous asset for Tesla, our customers and our future,” Tesla said in a statement.
The announcement came as the stock surged after the Journal’s report that Tesla has been working on a self-parking system for the Model S and Model Y. “The news of this acquisition by Steelsiers Engine, a cutting-edge AI company, will be felt globally, and I’m confident it will help us accelerate our future success,” said Tesla CEO Elon Musk in a video statement.
“It’s a game changer for our future and for our customers.”
Tesla shares rose 6.3% to close at $39.93 in New York.
The stock rose again as the news of the deal broke, hitting a new all-time high of $41.50 on Monday.
Shares are down more than 50% from their record high on March 6, 2015.
Analysts had expected Tesla to report quarterly results on Tuesday.
Analytics firm FactSet reported that the Tesla acquisition was not the result of a bidding war but was the result, in part, of the company’s efforts to develop its own AI technology.
“Steelseries has a strong track record in the autonomous driving space and we are pleased to be able to align with Tesla on this path,” said John Binder, chief technology officer at Steelsowers Engine.
Tesla also said it would hire 100 new people and increase the number of people who work in the company by 10% to help with its AI work.
“This acquisition of Steelsiris Engine will allow us to develop a fully autonomous driving platform and will help accelerate our plans to develop the world’s first fully autonomous truck,” Tesla CEO Musk said in the statement.
Steelsers engine, based in Palo Alto, California, has been developing autonomous driving software for a long time, but in recent years has been more focused on developing the technology for self-flying vehicles.
Steersers engine has said its goal is to build a fully self driving system by 2021.
In a statement, Steerser’s chief executive said the acquisition would help accelerate the companys development of autonomous driving technologies.
“As the company prepares to make the leap from a hardware development platform to a software platform, it is critical to be at the forefront of the efforts to make self-drive technology a reality,” Binder said in his statement.