Following layoffs at Tesla, the firm is going to buy the energy storage company, Maxwell Technologies for $218 million. Tesla has agreed to buy the energy storage business for $4.75 per share, up $1.75 from the market price. Reports suggest that Maxwell expects the deal to be closed in Q2 2019.
While Maxwell does make ultracapacitors, which Elon Musk is a fan of, the real reason for buying up the firm is probably the new dry electrode technology which can increase the driving range of electric vehicles using the technology. Dry electrode technology can also reduce the cost of electric vehicle batteries too, which is just what Tesla needs to reach a bigger pool of customers.
Dr. Franz Fink, CEO and President of Maxwell, commented on the deal, saying:
“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. 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.”
For its part, Tesla has only said:
“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.”
The deal will see Tesla pick up 380 employees as part of the acquisition but it’s not clear how many will stay in their posts given that two Elon Musk-owned firms, Tesla and SpaceX just had their own round of layoffs in order to cut costs.