Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[lascavarian]

Does anyone know the specifics of the deal? I was under the impression that it was a done thing. What is the timeline for this buyout to become official?

It seems like Maxwell has not done their Q4 ER yet so there may be more info coming.

After listening more closely to the Maxwell audio I am impressed by their statement that the dry electrode tech can yield a 16x increase in battery production capacity density and 20% cost reduction. GF1 may just have become TF1.

This seems like it is a substantial incremental improvement. Maxwell discusses working with an OEM automotive manufacturer and I have to believe that is Tesla although it is not directly stated so Tesla may have been looking at this tech for a while.

 

[anthonyj]

Scoop: GM Reportedly Working On Electric Pickup Truck With Tesla Powertrain | CleanTechnica

Shortsville Times
2/12/19
SCOOP: Troubled automaker Tesla is in talks with combustion/electric vehicle leader General Motors about a possible brand takeover. This comes a couple weeks before Tesla is expected to declare bankruptcy, due to it’s inability to pay back it’s March 1st convertible bond. More details to come soon after the bankruptcy announcement.

Editor’s take:

I think GM (the world’s premier electric vehicle manufacturer) is being too generous. By acquiring TSLA at pennies per share, shareholders will be getting at least something back. The brand, logo, and tech are pretty worthless. Not sure of their motives.
(Author Mark Spiegel is short TSLA via puts. His beagle is long TSLA.)

 

[avoigt]

These days in Europe....

"I am the man that charge you up"

 

[Dan Detweiler]

Scoop: GM Reportedly Working On Electric Pickup Truck With Tesla Powertrain | CleanTechnica

Shortsville Times
2/12/19
SCOOP: Troubled automaker Tesla is in talks with combustion/electric vehicle leader General Motors about a possible brand takeover. This comes a couple weeks before Tesla is expected to declare bankruptcy, due to it’s inability to pay back it’s March 1st convertible bond. More details to come soon after the bankruptcy announcement.

Editor’s take:

I think GM (the world’s premier electric vehicle manufacturer) is being too generous. By acquiring TSLA at pennies per share, shareholders will be getting at least something back. The brand, logo, and tech are pretty worthless. Not sure of their motives.
(Author Mark Spiegel is short TSLA via puts. His beagle is long TSLA.)

You know, I really wish you would stop giving them ideas. lol!

 

[gora321]

TeslaOpinion‏ @TeslaOpinion 12h12 hours ago
Former SEC senior lawyer: SEC should NOT have sued Musk. Saudi fund’s reported interest in a deal was ENOUGH to make Musk’s statements LEGAL. $tslaq https://www.businessinsider.com.au/sec-wrong-to-sue-elon-musk-for-fraud-lawyer-2018-9?r=US&IR=T …
TeslaOpinion on Twitter

 

[mongo]

TeslaOpinion‏ @TeslaOpinion 12h12 hours ago
Former SEC senior lawyer: SEC should NOT have sued Musk. Saudi fund’s reported interest in a deal was ENOUGH to make Musk’s statements LEGAL. $tslaq https://www.businessinsider.com.au/sec-wrong-to-sue-elon-musk-for-fraud-lawyer-2018-9?r=US&IR=T …
TeslaOpinion on Twitter

Article is from September of last year, am I missing something new?

 

[JRP3]

Seeing reports that a deal has been made to avoid another government shutdown.

 

[bhtooefr]

Does anyone know the specifics of the deal? I was under the impression that it was a done thing. What is the timeline for this buyout to become official?

Dan

The closing of the transaction is subject to the successful tender and exchange of shares, certain regulatory approvals and customary closing conditions. These terms, along with additional terms and conditions of the transaction, can be found in the Company's Form 8-K filed on February 4, 2019 with the Securities and Exchange Commission and in the Merger Agreement, which is filed as an exhibit to the Company's Form 8-K.

While there can be no assurances on the closing date, the Company anticipates that the merger will be consummated in the second quarter of 2019, or shortly thereafter, should all conditions be met and subject to the timing of the aforementioned approvals.

The Merger Agreement and the consummation of the Offer, merger and other transactions contemplated in the Merger Agreement have been unanimously approved by Maxwell's board of directors, all of whom recommend to the Company's stockholders that they accept the Offer and tender their Maxwell shares pursuant to the Offer. The directors and certain officers of Maxwell and I2BF Energy Limited have agreed to tender all of their Maxwell shares in the Offer, which in the aggregate represent approximately 7.56% of the outstanding shares of Maxwell common stock.

Read: still has to go through regulatory (I don't see a problem here) and shareholder approval. There's easily a window for other bids to occur, and the shareholders choosing those bids instead.

 

[Tslynk67]

It seems like Maxwell has not done their Q4 ER yet so there may be more info coming.

After listening more closely to the Maxwell audio I am impressed by their statement that the dry electrode tech can yield a 16x increase in battery production capacity density and 20% cost reduction. GF1 may just have become TF1.

This seems like it is a substantial incremental improvement. Maxwell discusses working with an OEM automotive manufacturer and I have to believe that is Tesla although it is not directly stated so Tesla may have been looking at this tech for a while.

From watching the video, I got the impression that there was no Q4ER as Tesla was already in the process of acquiring the firm.

I suppose the bid is down to a shareholder vote?

On one hand, if there was a competing bid, the Maxwell shareholders might want to consider how much newly acquired $TSLA might grow in the future...

 

[Hock1]

What is you reasoning behind that? If the technology they provide is so awesome, why TSLA are the first bidder knocking on their door?

Somebody has to be first. In terms of the value of the technology, I am not an electrical or chemical engineer. So, I don't have any fundamental thesis. The fact that Elon has a keen interest in ultra capacitors, ( and the opinions of many people on this board), as to the utility of UCs in battery efficiency and longevity, is enough for me to say $219M is low. As a MXWL shareholder, being tied up for 60-90 days with the prospect of receiving less shares if TSLA rises, I would welcome any improvement to the deal. JMO.

 

[Tslynk67]

Article is from September of last year, am I missing something new?

TeslaOpinion has the habit of regurgitating old links, which can be a bit misleading IMO. I got caught-out a few times myself blindly re-tweeting without checking first.

 

[Hock1]

Read: still has to go through regulatory (I don't see a problem here) and shareholder approval. There's easily a window for other bids to occur, and the shareholders choosing those bids instead.

The terms are:
The Offer will value each share of Maxwell common stock at $4.75 per share. Pursuant to the Offer, each share of Maxwell common stock will be exchanged for a fraction of a share of Tesla's common stock, equal to the quotient obtained by dividing $4.75 by a volume weighted average price of one share of Tesla's common stock as reported on the NASDAQ Global Select Market for the five consecutive trading days preceding the expiration of the Offer, and which is subject to a floor that has been set at 80% of a volume weighted average price of Tesla common stock calculated prior to signing.

 

[Mark's Beagle]

FCA is voted for because they are incompetent, but I think that also means that aren't competent enough to do this.

Daimler is voted for because of recent news of collaboration with Tesla, but I don't think their pickup truck would be a huge deal as KarenRei intimated.

So I think Ford, GM, or Toyota. I think Ford is out because it seems they are doing it on their own.

Toyota - I have no idea.

GM - previously claimed they weren't electrifying pickup trucks, but changed position in January. So I think it's them.

Nailed it

 

[JRP3]

and the opinions of many people on this board

Most of the opinions on this board, and all of the opinions of those who actually know the technology, are that ultracaps are not going to be significant in any realistic time frame, if ever.

 

[Dynastar]

On one hand, if there was a competing bid, the Maxwell shareholders might want to consider how much newly acquired $TSLA might grow in the future...

I'm curious about this reasoning, which I've seen in other deals too. Tesla stock is a liquid asset, so why would anyone care vs cash? Are there tax implications for the holders of Maxwell stock if they were to liquidate their Tesla shares right after the deal closed?

 

[shlokavica22]

Somebody has to be first. In terms of the value of the technology, I am not an electrical or chemical engineer. So, I don't have any fundamental thesis. The fact that Elon has a keen interest in ultra capacitors, ( and the opinions of many people on this board), as to the utility of UCs in battery efficiency and longevity, is enough for me to say $219M is low. As a MXWL shareholder, being tied up for 60-90 days with the prospect of receiving less shares if TSLA rises, I would welcome any improvement to the deal. JMO.

You shouldn't automatically assume that technology is equally useful/important to others as well.
I would imagine that if they really had something so obviously good, they would have been bombarded with offers by now. The amount we are talking about is relatively low after all.
There is quite a big chance, that TSLA already has a way to integrate what MXWL offer and others don't.

 

[Tslynk67]

I'm curious about this reasoning, which I've seen in other deals too. Tesla stock is a liquid asset, so why would anyone care vs cash? Are there tax implications for the holders of Maxwell stock if they were to liquidate their Tesla shares right after the deal closed?

I assume it's an easy way to pay for it without having to find some cash?

 

[KarenRei]

Glovis Courage en route to Europe. Golden Ray en route to port.

 

[Fact Checking]

Nailed it

GM was my guess too:

I think it's a pickup truck. I.e. the realistic possibilities are: GM, Ford, FCA and Toyota - with a higher probability for a North American partner.

Has GM announced an EV power train partner?

 

[Hock1]

You shouldn't automatically assume that technology is equally useful/important to others as well.
I would imagine that if they really had something so obviously good, they would have been bombarded with offers by now. The amount we are talking about is relatively low after all.
There is quite a big chance, that TSLA already has a way to integrate what MXWL offer and others don't.

All good points. My vision is somewhat clouded by my disappointment that, after investing in MXWL 5 years ago for the specific reason that I thought their tech would be useful to TSLA, I'll be losing about 20%. Disappointed, but I'll be tendering (unless a better offer comes long!)