Tesla to Buy Maxwell Technologies
Feb. 6, 2019—Tesla plans to purchase Maxwell Technologies, an energy storing company for $218 million, according to a report by the CBC. The deal could result in the production of batteries that last longer and hold more energy, the publication reports.
Tesla continues to produce its Model 3 sedan, CBC reports, and allegedly needs to lower the price in order to reach a broader customer base. According to the CBC, Maxwell executives told investors in January that the business has created technology to increase driving range and minimize the cost of electric vehicle batteries.
"Tesla needs Maxwell's solvent-free battery electrode manufacturing for a viable path to lower battery costs, Craig Irwin of Roth Capital Partners said to the CBC. "Real competitors are coming now, so Tesla needs to move fast."
According to the CBC, the exclusive battery cell supplier for Tesla vehicles is Japan's Panasonic Corp.
The deal has already been approved by Maxwell's board, CBC reports, and is expected to close around the second quarter of 2019.
The offer values each Maxwell share at $4.75, representing a 55 per cent premium to the stock's closing price on Friday, the companies said to CBC. According to the CBC, Maxwell shares rose to trade at $4.58.