Home News Tesla’s $218M acquisition of ultracapacitor firm opens doors to energy breakthroughs

Tesla’s $218M acquisition of ultracapacitor firm opens doors to energy breakthroughs

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Just a few days later Tesla (NASDAQ:TSLA) submitted its second consecutive profitable quarter, the company has stated that it plans to get energy technologies company Maxwell Technologies, a California-based maker of ultracapacitors and batteries. The price will soon be an all-stock trade valued at approximately $218 million, even using Tesla purchasing Maxwell’s 45.9 million shares for $4.75 per share — a 55% premium over the electricity company’s closing price of $3.07 per share past Friday.

Maxwell Technologies specializes in the progression of ultracapacitors. Prior to its purchase by Tesla, Maxwell was working on developing dry electrode technology which could be used to create ultracapacitors that can store large quantities of electric charge without losing electricity — a breakthrough for electric automobiles and energy storage apparatus . Ultracapacitors are well known by various industry watchers as a possible option to today’s batteries, considering their capacity to be safer and more dependable.

In a statement to The Street, Maxwell Technologies CEO Dr. Franz Fink voiced his optimism over the projected purchase. The CEO further pointed out that Tesla and Maxwell share a common goal — to create a future.

Maxwell Technologies’ building in San Diego, CA. (Photo: Maxwell Technologies)
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“We are extremely enthusiastic with rsquo & now;s announcement that Tesla has agreed to get Maxwell. Tesla is a world class and well-respected innovator that shares a common objective of creating a sustainable future. We believe this transaction is in the best interests of Maxwell stockholders and offers investors the opportunity to take part in Tesla’s duty of hastening the advent of sustainable energy and transport ,” he said.

Dr. Fink’s announcement has been resisted by Tesla. In a statement to CNBC, the electric vehicle maker noted it is always on the lookout for possible acquisitions which would let it pursue its mission. “We are constantly searching for possible acquisitions which make sense and encourage Tesla’s mission to accelerate the entire world ’s transition to renewable energy,” Tesla noted in a statement.

What is especially interesting about Maxwell’so purchase is that Elon Musk himself has voiced his support for ultracapacitor technology previously. Back in 2013, Musk said on a Twitter post that he is a “large lover of ultracapacitors,” even adding he was planning on conducting his Ph.D. research on ultracapacitors throughout his brief stint at Stanford University. Having said that, Musk also noted that there has to be a breakthrough in energy density for ultracapacitors.

@yes_andre I'm a major fan of ultracapacitors. Was going to get my PhD in Stanford on these. But we want a breakthrough in energy density…

— Elon Musk (@elonmusk) May 20, 2013

Tesla’s purchase of Maxwell Technologies marks the electric vehicle manufacturer ’s fifth purchase so far . Prior to Maxwell, Tesla acquired Riviera Tool LLC, a producer of stamping die systems used to make sheet metal components in May 2015; SolarCity, a supplier of solar power solutions for companies, businesses, authorities, and non-profit businesses in June 2016; Grohmann Engineering, a company which makes Tesla’s robots for manufacturing at November 2016; and Perbix, a maker of highly automated manufacturing equipment in November 2017.

Tesla and Maxwell Technologies expect to close the purchase deal in 2019’s second quarter, pending customary closing conditions. So far, the deal is apparently well received from Maxwell’s investors, together with the company’s inventory (NASDAQ: MXWL) trading upward 50.49% as of composing. The reaction of the market to Tesla appears to be more muted, using TSLA inventory trading down 0.52% as of composing.

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate some positions over 72 hours.

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