skip to Main Content

Free Newsletter: Actionable insight every morning for the self-directed investor. Find out more

Tesla to buy electric battery developer Maxwell Technologies

Tesla announced yesterday that it was going to buy the California-based electric battery developer Maxwell Technologies for $218m in a deal that is expected to complete in the second quarter of this year.

Maxwell already supplies the likes of China’s Geely, Lamborghini and General Motors among others and this deal will certainly enhance Tesla’s existing battery capability. Maxwell’s battery expertise could ultimately help to lower the cost of producing batteries, which would be very useful to Tesla for the short to medium term at least.

I just think that, ultimately, batteries will become commoditised – especially as their range approaches and/or exceeds that of traditional cars – so long term benefit will be limited.

However, until then, better battery technology could help Tesla sales – so I think that this is a solid strategic move.

Netflix changing the broadcasting landscape?

The next thing I wanted to talk about was Netflix and how it looks like changing the whole broadcasting landscape as it is seeking to pour money into local content – which could prove to be bad news for British broadcasters as the UK is Netflix’s most valuable market outside America.

It’s not the only streaming company that’s planning on increasing capex either as the combined spend of Netflix, Amazon, Facebook and Apple over the next three years is thought to be quadruple that of UK broadcasters.

UK broadcasters are currently in talks to cobble together their own streaming service, but this won’t be as easy as it sounds because they actually benefit from Netflix subscribers watching their content as well.

Although it’s difficult to target specific quoted companies that will benefit from this, it does show the continued evolution of how people consume content.

In much the same was that the likes of Google and Facebook muscled into the previously cosy world of advertising, Netflix will start to have more of an impact on traditional broadcasting.

Become a better investor with SharePad Designed to give you the confidence to pick your own investments, Sharepad gives you access to a wealth of information on UK, US & European stocks. Find out more

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Peter Watson

Peter Watson

Peter Watson founded Seiha Consulting, a career transition consultancy, after working in HR and four recruitment agencies. He was also a stockbroker for 13 years in London and Tokyo, advising some of the world’s biggest financial institutions on European and Japanese stock market investment. He started writing the Daily (previously known as “Watson’s WIFI”) to help candidates prepare for interviews – but soon found that many others wanted to read it as well!

Stocks in Focus

Here are some of the smaller companies we are following most closely. They all represent significant growth stories in our view. Our in-depth reports go into more detail on why we like them.

Comments


Back To Top