Tesla Buys Battery Technology Firm Maxwell for $218 Million

The Street ^ | Monday, February 4, 2019 | Martin Baccardax

[SunkenCiv]

Tesla Inc. (TSLA) said Monday it will buy Maxwell Technologies Inc. (MXWL) , a battery technology firm based in San Diego, for around $218 million.

Telsla will pay $4.75 for each Maxwell share, the company said, a 54.7% premium to its closing price Friday of $3.07, and bring the company into the corporate fold as a wholly owned subsidiary.

"We are very excited with today's announcement that Tesla has agreed to acquire Maxwell. Tesla is a well-respected and world-class innovator that shares a common goal of building a more sustainable future," said Maxwell CEO Franz Fink. "We believe this transaction is in the best interests of Maxwell stockholders and offers investors the opportunity to participate in Tesla's mission of accelerating the advent of sustainable transport and energy."

Tesla shares were marked 0.18% lower at $311.64 each following the merger announcement.

[SunkenCiv]

If this is the one I watched this morning, I didn't finish because of the literal handwaving, manic go-nowhere yapping, and general sound of the voice, and the speaker isn't all that bright, either. But hey, I was pretty tired when I made this. /jk Regardless, it's free. Not really me. ;^)

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[SunkenCiv]

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[SunkenCiv]

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[HombreSecreto]

Did they go “wee, wee, wee” all the way to the bank?

[SunkenCiv]

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[Reily]

Didn’t Jack Benny have a Maxwell?

[SunkenCiv]

Someone did -- TSLA $320.60 +7.71

[SunkenCiv]

Stumper, I don't know (that's a little before my time). But I know that Maxwell had a silver hammer.

[SunkenCiv]

Dry Battery Electrode technology and ultracapacitors.

[SunkenCiv]

Here it is, a 1923 Maxwell:

http://www.google.com/search?q=Jack+Benny%27s+Maxwell&sa=X&oi=image_result_group&tbm=isch

[Red Badger]

https://en.wikipedia.org/wiki/Maxwell_Technologies

[dangus]

I briefly had them confused with Maxell, the makers of the cassette tapes used for your really _important_ mix tapes, and the floppy disks for all your cheap, cracked video games. Yes, Maxell does make batteries. (Well, they don’t make many floppies anymore.)

This is interesting: it confirms that yes, Tesla sees the writing on the wall vis-a-vis the expiration date for Lithium battery-technology.

[SunkenCiv]

Thanks, looks like the four founders named it after James Clerk Maxwell.

[SunkenCiv]

Solid state batteries are coming, and the price of the current high-cap batts has been rising and will continue to rise, putting constraints on growth for both the vehicles (not just Tesla's) and the Tesla Powerwall products.

[SunkenCiv]

Heh, and yeah, Maxell was my go-to for _important_ mix tapes, and that was back before I'd ever heard the expression "mix tape". ;^)

[Rebelbase]

Maxwell shareholders did.

~Telsla will pay $4.75 for each Maxwell share, the company said, a 54.7% premium to its closing price Friday of $3.07~

[Reily]

You need to spend more time in front of some nostalgia TV channel & see how comedy is really done! :)

[Moonman62]

This looks like a good analysis:

https://qz.com/1541864/tesla-bought-maxwell-technologies-for-218-million-but-not-for-its-ultracapacitors/

It’s possible that the Maxwell acquisition could help Tesla boost its cash flow. Dry electrode technology promises to cut the cost of lithium-ion batteries in a specific way. When there’s no solvent in the process, there’s no need for long ovens for the drying process. This greatly reduces the floor space needed to produce these sorts of batteries.

In that sense, even if the Maxwell acquisition makes only a marginal improvement to the energy density of Tesla batteries, it still contributes to the bottom line. As the company looks to deliver on its promise of the $35,000 mass-market Model 3, whatever helps in lowering the cost of production will be welcomed. As another battery executive put it, the lower capital expenditure could make a “radical” difference to Tesla’s long-term prospects.