Tesla Inc. agreed to acquire battery-technology company Maxwell Technologies Inc. for about $218 million in stock, as Elon Musk’s electric car maker adds expertise in energy storage and power delivery. The purchase price of $4.75 a share, announced by Maxwell in a statement on Monday, amounts to about a 55 percent premium to the target’s closing price on Febuary 1.
The companies share a goal of building a more sustainable future, Maxwell Chief Executive Officer Franz Fink said in the statement. The deal will allow Maxwell shareholders “to participate in Tesla’s mission of accelerating the advent of sustainable transport and energy.”
Tesla shares wiped out their premarket gains and were down less than 1 percent to $311.90 in early trading after the announcement. Maxwell shares were halted on the news.
In related news, Tesla Inc. plans to start partial production in China in the second half of next year, the city of Shanghai said.The mayor of the city, Ying Yong, visited the project site in the Lingang area and encouraged Tesla to accelerate construction, according to a statement on Shanghai’s official WeChat account Thursday. The plant, dubbed Gigafactory 3, will be the biggest ever foreign-invested manufacturing project in Shanghai.
The Palo Alto, California-based company has secured more than 200 acres of land for the China factory, which is expected to cost several billion dollars to build. Tesla’s first overseas plant will help the electric-car maker avoid some of the risks involved with importing vehicles, such as higher tariffs caused by the trade tensions between China and the U.S.