Jumat, 03 Februari 2023

GM Steals Tesla’s Battery Secret

Lithium's price has surged 10 times since the start of 2021. That's due to shortages, and lithium miners have been struggling to quickly bring new production online. That's why General Motors (NYSE: GM) will invest $650 million in a U.S. lithium mine, a record investment by an automaker to secure the raw materials used in electric vehicle batteries.

GM Steals Tesla’s Battery Secret 

Friday, February 3, 2023

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Lithium.

It’s the number one biggest bottleneck for automakers that are producing electric vehicles.

The reason is obvious…

Lithium's price has surged 10 times since the start of 2021. That’s due to shortages, and lithium miners have been struggling to quickly bring new production online.

That's why General Motors (NYSE: GM) will invest $650 million in a U.S. lithium mine, a record investment by an automaker to secure the raw materials used in electric vehicle batteries.

The company will make an initial investment of $320 million by mid-2023 in return for exclusive rights to the first stage of lithium production at Lithium Americas (NYSE: LAC) Thacker Pass project in Nevada. The initial investment gives GM a 10% stake in Lithium Americas. Plus, GM plans to invest another $330 million in the future.

Even if we ignore Tesla for a moment, other automakers including GM, Ford and Stellantis have invested in or offered pre-financing to lithium, cobalt and nickel producers. GM’s latest investment represents a significant escalation in the contest to secure battery metals and highlights growing integration between the automotive and mining industries.

The second round of GM's funding will happen after Lithium Americas’ Thacker Pass mine has been separated from its Argentine businesses. The split is regarded as crucial for Lithium Americas to access U.S. government funding because the mining company is currently partly owned by Ganfeng Lithium, a leading Chinese lithium producer.

Lithium Americas’ Thacker Pass mine is expected to begin production in the second half of 2026 and will produce enough lithium for up to one million EVs a year.

The deal comes as GM prepares to boost its electric vehicle offerings by accelerating production of the Cadillac Lyriq and the GMC Hummer this year. Plus, the company has plans for electrified versions of the Chevrolet Equinox, Blazer and Silverado pick-up truck. The company said its target is to manufacture 400,000 EVs in the first half of 2024.

Expect many more such investments, thanks to the Inflation Reduction Act. This flagship climate legislation included tax credits for consumers on EVs that source their battery raw materials from the U.S. and free-trade partner countries, which has added great urgency for carmakers to secure domestic supplies.

Tesla Stock Soars 65% in 2023

In the coming days, I expect that Tesla (NASDAQ: TSLA) CEO Elon Musk will reveal what he calls The Secret Master Plan 3.0.

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  • The single biggest technology shift that’s behind the 4th Industrial Revolution.
  • Why buying TSLA stock today could be a HUGE and costly mistake – that’s why Elon recently SOLD $7 billion of his stock.

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Tony Daltorio

Editor @ Wall Street Spy

Top Investment Ideas

The Truth About Tesla's New Business

Tesla (NASDAQ: TSLA) plans to launch its own lithium business. The company plans to build a lithium refining facility on the Gulf Coast in Texas – nearby Tesla’s Giga Texas plant. The plant will produce battery grade lithium hydroxide. Finished lithium would then be usable in batteries – and shipped to Tesla’s factories in California, Nevada and Texas. Construction could begin soon – according to an application with the Texas Comptroller’s Office.

Goldman Sachs: This Stock Could Jump 25%

According to Goldman Sachs (NYSE: GS), Tesla (NASDAQ: TSLA) could see one heck of an electrified move in 2023. Goldman Sachs says Tesla could be on the BRINK of a major jump. Here's why --- Based on the last earnings call, Goldman Sachs says that “Given the focus of investors on Tesla’s delivery volumes in particular (and the importance of volume for its vertically integrated model and the cost benefits long-term of its newer factories when at scale), we see the order strength as the most important takeaway from the call.” We continue to believe that the company is well positioned for long-term growth given its leadership position, both in terms of cost structure and as a full solution provider in clean mobility.”

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Get a Tesla Cheaper Than $13,000

Tesla recently released its Q4 2022 earnings and the company made it clear to shareholders that it plans to keep cutting the cost of its cars. This comes right after Tesla had ALREADY made price cuts earlier this month – with the largest one being the Model Y, which you can get for just $13,000. No wonder the automaker is experiencing robust demand for their vehicles.

The Adoption of EVs Just Got a Serious Boost

In mid-January, Tesla made new price cuts on new models in the U.S. and Europe. This is FANTASTIC news for the future of EVs. One of the main problems of EV adoption was their exorbitant price. And now that changed overnight. These new price cuts could seriously boost the adoption of EVs, especially with some Tesla models selling as low as $13,000.

 

 

 

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