The impact of Tesla's deal with Piedmont Lithium
This is the stock price performance of Piedmont Lithium - and Australian-based company that extracts the metal essential for EV batteries. Tesla signed a 5-year deal to take lithium from Piedmont - in addition to its other plan to extract the metal in Nevada. Piedmont's stock surged by almost 300%. Tesla's stock is still in a downturn though.
The daily chart below shows that Tesla is consolidating around the current level of $420. The heights of $500 were left in the dust a month ago but may turn into a bullish target soon - once we see the downtrend capping the upside broken. In the long-term, it's unlikely that Tesla will go down because fundamentally, it keeps expanding its horizons. Even though its P/E ratio is way beyond 20 as Warren Buffett liked to warn, the business outlook for Elon Musk's business looks positive and full of opportunities. And sales - including in China. So let's wait where the bottleneck of the current fluctuation to exhaust and see where the stock goes.
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