- TSLA has made the EV Sector Red Hot.
- The Materials Needed for the EV sector is also coming along for the ride.
- Lithiium and Nickel producers will see significant increase in demand.
When you talk about the EV sector the first name that comes to your mind is Tesla. And yes Elon has positioned TSLA as the leading name in this space and for the most part he has delivered. But what he has delivered is just the tip of the iceberg. The battery day was an eye opener on where he is heading. Though its tough to Justify Tesla's current price on traditional valuation methods there is a lot of unknown and potentially exponential growth that is possible. It will interesting to See how Tesla's 3Q delivery numbers look.
Tesla's Growth has woken up a lot of Lithium, Nickel and Other Material Names. Just today TSLA inked a deal with an Australian company Piedmont Lithium for a 5 year supply of Lithium ore. Piedmont's U.S.-listed American depositary receipts were trading at $34.00, up 209.10% earlier today.
This also sent LAC Lithium Americas Corp. (LAC) up to $10.50, up $1.96 or 22.95% higher. LAC also reported yesterday that they were filing to Raise upto $500 Million presumably to develop the mine in Nevada.
This news also sent Giga Metals Corp. (TSXV: GIGA) higher by 57% by the end of the day. There have been rumors that Tesla has been in talks with Giga Metals but no confirmation from Giga Metals. According to Giga Metals is actively advancing its flagship Turnagain nickel sulphide deposit with the aim of sustainably producing 40,000 tonnes of nickel per year. And EV's will need a lot of Nickel and with some recent shutdowns of Nickel Mines it looks like there will be a shortage in a few years
Analyst's Disclosure: I am/we are long LAC, HNCKF.
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