Tesla $TSLA vs Lithium PricesTesla NASDAQ:TSLA vs Lithium Prices
Tesla was faced with crushing increases in the price of lithium which created a feedback-loop spiral to the downside for investor and speculator expectations.
There were many other factors going on at the same time for Tesla's big slide from $400+ down to $100+ per share, but this picture paints a picture and story which is easy to remember.
One of the biggest costs of producing battery-electric-vehicles (BEV's) is the cost of lithium. This massive run-up in the price of lithium may have exposed Tesla to the uncertain pricing of lithium supplies and may also have encouraged Tesla to begin their own lithium extracting and processing operations. Clearly, this was a problem and it fed into investor expectations and drove the stock lower and lower until finally the fever broke and lithium prices have crashed.
Keep an eye on Lithium prices here at TradingView and set alerts for a heads-up on sharp increases or decreases in the price to have a heads-up on what is happening under the surface.
Tim
10:02AM 8/22/2023 EDT
