Deal Timeline

Plotted by close date where disclosed, otherwise announcement. Select any marker to jump to the deal entry.

The Acquisition Playbook.

Three patterns run through Tesla's acquisitions — what it looks for, how it pays, and how it folds in what it buys.

01
Acquisition criteria
Buy to vertically integrate, not to diversify.
Every disclosed Tesla acquisition folds directly into its existing mission rather than opening a new market. SolarCity brought rooftop solar generation and installation in-house to pair with Powerwall and Powerpack storage; Maxwell was acquired "for its complementary technology and workforce" in energy storage; Grohmann added automated-manufacturing engineering "to facilitate and expand vehicle production." Tesla acquires capabilities it intends to own end-to-end.
PERBIX Machine CompanyHibar Systems LimitedCompass Automation IncorporatedSiLionMaxwell Technologies
02
Capital deployment
Stock is the currency for the material deals.
Both of Tesla's large acquisitions were all-stock: SolarCity at 0.110 Tesla share per share (~$2.1 billion consideration) and Maxwell via a stock-for-stock exchange offer at a final 0.0193 ratio (~$207 million). Using equity let Tesla pursue strategic targets without drawing down cash needed for its capital-intensive manufacturing ramp.
PERBIX Machine CompanyHibar Systems LimitedCompass Automation IncorporatedSiLionMaxwell Technologies
03
Integration approach
Technology-and-team tuck-ins stay small and mostly private.
Beyond SolarCity, Tesla's deals are compact acquisitions of engineering capability — Maxwell's dry-electrode process, Grohmann's automation expertise — and a string of undisclosed sub-material tuck-ins that Tesla reports only in aggregate (for example, $96 million total across various 2019 acquisitions). Tesla rarely issues standalone deal press releases, so most of its M&A surfaces through 8-Ks, S-4s and 10-K notes rather than announcements.
PERBIX Machine CompanyHibar Systems LimitedCompass Automation IncorporatedSiLionMaxwell Technologies

The Full Deal Book

7 acquisitions — each with the deal value, financing structure, target revenue, and executive commentary where disclosed.

01 PERBIX Machine Company, Inc. · United States (Minnesota) Not disclosed
Announced Nov 2017 Closed Nov 2017 Acquisition of PERBIX; the company became part of Tesla. Deal terms were not disclosed.

Tesla acquired PERBIX Machine Company, a Minnesota-based firm founded in 1976 that designs, builds and services highly automated, high-volume manufacturing machinery. PERBIX had already supplied Tesla with custom manufacturing equipment for nearly three years before the deal. Bringing the company in-house extended Tesla's effort to treat the factory itself as a product.

02 Hibar Systems Limited · Ontario, Canada Not disclosed
Disclosed in 8-K Acquisition

Hibar Systems was a Canadian manufacturer of precision dosing and dispensing pumps and automated filling and assembly equipment, including high-speed electrolyte-filling and cell-manufacturing systems used in lithium-ion battery production. Following Tesla's acquisition the business was folded into Tesla's manufacturing-automation group (its Canadian operations now trade as Tesla Toronto Automation), and it first appears among the subsidiaries listed in Tesla's fiscal 2019 Form 10-K, indicating it became a wholly-owned Tesla entity during 2019.

03 Compass Automation Incorporated · Illinois, United States Not disclosed
Disclosed in 8-K Acquisition

Compass Automation was an Illinois-based automation systems integrator that designed and built custom automated assembly, testing and inspection machinery and robotic work cells for manufacturers. Tesla acquired the company to expand its in-house advanced-manufacturing and automation engineering capability, complementing earlier automation acquisitions such as Grohmann and Perbix. Compass Automation Incorporated is listed among the subsidiaries in Tesla's fiscal 2020 Form 10-K.

04 SiLion, Inc. · Colorado, United States Not disclosed
Disclosed in 8-K Acquisition

SiLion (incorporated as SiiLion, Inc. and based in Colorado) was an early-stage battery technology startup developing higher-energy-density lithium-ion cells built around silicon-based anode and advanced electrolyte materials. Tesla acquired the company to reinforce its in-house battery-cell research and development, and SiiLion, Inc. is listed among the subsidiaries in Tesla's fiscal 2020 Form 10-K, indicating it became a wholly-owned Tesla entity by the end of 2020.

05 Maxwell Technologies, Inc. · San Diego, California, United States $207M
Announced Feb 2019 Closed May 2019 All stock
Ultracapacitor energy storagedry battery electrode manufacturing processpower delivery components

Maxwell Technologies was a San Diego-based energy storage and power delivery company whose two product lines were ultracapacitors and an emerging dry battery electrode manufacturing process. Tesla pursued the deal chiefly for that dry electrode technology, which Maxwell believed could raise energy density and cut cost for lithium-ion cells, plus Maxwell's engineering workforce. The transaction was structured as a stock-for-stock exchange offer through Tesla's Cambria Acquisition Corp. subsidiary, initially valued at $4.75 of Tesla stock per Maxwell share; the final exchange ratio was 0.0193 Tesla share per Maxwell share. Tesla recorded purchase consideration fair value of about $207 million (902,968 Tesla shares at $229.49 on the closing date). Approximately $207 million (all-stock; 0.0193 Tesla share per Maxwell share).

Why it was attractive
  • Maxwell's dry battery electrode process offered a differentiated path to higher energy density and lower battery cost
  • directly relevant to Tesla's cell-manufacturing roadmap
On May 16, 2019, we completed our strategic acquisition of Maxwell Technologies, Inc., an energy storage and power delivery products company, for its complementary technology and workforce.Tesla — Inc. FY2019 Form 10-K, Business Combinations note
06 Grohmann Engineering GmbH · Prum, Germany Not disclosed
Announced Nov 2016 Closed Jan 2017
Automated production systemsmanufacturing process engineeringfactory automation

Grohmann Engineering was a German engineering firm specializing in automated manufacturing systems. Tesla acquired it to build out in-house expertise in automated production, forming the nucleus of what it branded Tesla Grohmann Automation and using the capability to help scale and speed up vehicle manufacturing. Tesla did not disclose an individual purchase price for the deal; it was reported alongside other sub-material acquisitions in the company's financial statements.

Why it was attractive
  • Grohmann provided specialized automated-manufacturing engineering talent that Tesla could apply to scaling production of its vehicles
In January 2017, we completed the acquisition of Grohmann Engineering GmbH, a German manufacturing company with expertise in automated production. We expect this acquisition will facilitate and expand vehicle production.Tesla — Inc. FY2016 Form 10-K, Management's Discussion and Analysis
07 SolarCity Corporation · San Mateo, California, United States $2.1B
Announced Aug 2016 Closed Nov 2016 All stock
Residential and commercial solar installationsolar financing and leasingdistributed energy generation

SolarCity was the largest residential solar installer in the United States, financing, installing and servicing rooftop photovoltaic systems for homeowners and businesses. Tesla folded it into a combined energy business so that solar generation, home battery storage (Powerwall) and grid-scale storage (Powerpack) could be sold and installed as one integrated offering. Under the merger, each SolarCity share converted into 0.110 of a Tesla share, and the GAAP fair value of consideration transferred was about $2.1 billion (roughly 11.1 million Tesla shares at $185.04). SolarCity became a wholly owned Tesla subsidiary and its SCTY listing was retired. Approximately $2.1 billion (all-stock; 0.110 Tesla share per SolarCity share).

Why it was attractive
  • SolarCity gave Tesla an installed base of residential solar customers and a nationwide installation workforce
  • the demand-side complement to its Powerwall and Powerpack storage products
We're pleased to announce that Tesla's acquisition of SolarCity closed this morning.Tesla — Inc., closing announcement (8-K Exhibit 99.1, Nov 21, 2016)

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