Tesla to Buy Maxwell Technologies for Roughly $218 Million

Electric vehicle maker Tesla announced that it plans to acquire Maxwell Technologies, an energy technology company, in an all-stock transaction.

Tesla will be purchasing Maxwell Technologies’ 45.9 million shares for $4.75 a share, representing a 55% premium to Maxwell’s closing price this past Friday of $3.07 a share. The deal values the company at around $218 million.

Maxwell Technologies makes ultracapacitors that store and deliver energy, which Tesla’s CEO Elon Musk is a fan of. Musk once tweeted that he had plans to conduct research on the ultracapacitors at Stanford University.

“We are always looking for potential acquisitions that make sense for the business and support Tesla’s mission to accelerate the world’s transition to sustainable energy,” stated Tesla to CNBC.

“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 Dr. Franz Fink, President and Chief Executive Officer of Maxwell.

“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,” continued Dr. Fink.

“As TSLA works toward lowering EV prices to expand its addressable market while maintaining [gross margins], we view battery cost, weight, and performance as the key drivers,” said Oppenheimeranalyst Colin Rusch.

According to Rusch, Maxwell’s intellectual property in manufacturing “plus applications for its ultracapacitor technology seem likely to be integral in evolving TSLA’s pack design and performance, particularly in heavier vehicles that rely on regenerative braking for system economics.”

Disclaimer: We have no position in Tesla Inc. (NASDAQ: TSLA) nor Maxwell Technologies Inc. (NASDAQ: MXWL) and have not been compensated for this article.