U.S. electric carmaker Tesla has signed a deal with Australia’s lithium miner Piedmont Lithium to procure about one-third of Piedmont’s planned production of lithium ore mineral for five years.
Per the initial five-year agreement, Piedmont will supply about a third of its planned production of spodumene concentrate (160,000-tonnes-per-year) from its deposits in North Carolina to Tesla (TSLA). Meanwhile, the supply agreement “may be extended by mutual agreement for a second five-year term,” Piedmont said in a statement.
Recently, Tesla’s CEO Elon Musk announced a number of production and manufacturing developments at the company’s hotly-anticipated “Battery Day” on Sept. 22. However, the event disappointed elevated expectations, as it highlighted some near-term stagnation in the price reduction of current lithium ion batteries.
Nonetheless, Oppenheimer analyst Colin Rusch was still upbeat on the stock and said that he would buy Tesla shares “on any near-term weakness.” He reiterated his Buy rating on the stock with a price target of $451 (10.7% upside potential) on Sept. 23.
The 5-star analyst said Tesla outlined a “robust reimagining of battery design, manufacturing and performance,” and planned to bring a $25,000 vehicle in three years and a 20-times capacity increase by 2030. He also pointed out that Tesla’s 30% to 40% delivery growth guidance for 2020 is above the Street estimates. (See TSLA stock analysis on TipRanks).
Currently, the Street remains sidelined on Tesla stock. The Hold analyst consensus is based on 14 Holds, 6 Buys and 10 Sells. The $310.15 average price target implies downside potential of 23.9% to current levels. Shares have rallied by an extraordinary 386.9% year-to-date.
Running on Empty: Tesla’s Battery Day Fails to Convince
Boeing Pops 7% As FAA Chief Prepares To Test Fly MAX – Report
Hawaiian Airlines To Offer Hawaii-Bound Travelers Covid Tests; Street Says Hold
The post Tesla Signs Deal To Procure Ore From Australia’s Piedmont appeared first on TipRanks Financial Blog.
3 EV Stocks to Turn $50,000 to $1 Million by 2030
Investing in EV stocks offers investors the opportunity to benefit from the world’s green energy transition. The automotive sector will play a significant…
Tecpetrol Raises Alpha Lithium Takeover Bid to $1.48 Per Share
Tecpetrol Investments is not giving up on acquiring all outstanding common shares of Alpha Lithium Corporation (NEO: ALLI), announcing this
The post Tecpetrol…
Kansas Utility Evergy Plans To Keep Coal Plant Open To Meet Energy Demands of Panasonic Battery Plant
Evergy, the utility company serving eastern Kansas and western Missouri, is planning to request a rate increase in Kansas next
The post Kansas Utility…
Companies16 hours ago
Eye on Lithium: A sniff of Sigma-like success has ASX hard rock explorers moving to Brazil
Uncategorized18 hours ago
ASX listers prove green energy is the dominant flavour at Sydney Opera House investor lunch
Financing News24 hours ago
Metals Creek Resources Corp. Closes Final Tranche of Non-Brokered Private Placement of Flow-Through and Non Flow-Through Units
Base Metals18 hours ago
Where there’s smoke, there’s fire: Charger confirms lithium at three Bynoe prospects
Uncategorized15 hours ago
ASX Small Caps and IPO Weekly Wrap: How bad was it? I’m honestly afraid to look…
Uncategorized20 hours ago
Hard drilling Mako is proving up an 870,000oz-and-growing gold project and emerging manganese discovery at the same time
Companies9 hours ago
Solaris Resources’ (TSX:SLS) Lowell Mineral Exploration Earns Level 1 Carbon Footprint Badge from Ecuador’s Ministry of Environment
Companies4 hours ago
FPX Nickel shares rally on battery metals MOU