PLS Short Squeeze, page-39

Goldman's has a price target of $2.90 or a drop of 15%

Goldman Sachs predicted the initial drop in lithium prices and then also predicted that there wasn't going to be an immediate recovery and love them or hate them they were right.

When every level of the supply chain is oversupplied it is going to hurt prices. The drop in prices isn't from any big bad shorter, the big end of town or name the conspiracy, it's over supply.

Is it really a surprise that the level of shorting is so high and the share price has dropped. The negative case that the shorters have successfully relied on is is:

• Global demand for EV's hasn't increased as much as expected
• Chinese sales of EV's have been strong but it simply isn't enough as their needs are easily supplied with existing lithium
• Oversupply of batteries
• Oversupply of raw lithium
• Oversupply of EV cars. This can be seen in Australia where there is stock available now for Tesla rather than customers having to wait
• Discounting of EV's to move stock. These car companies are only reducing prices because they can't sell enough while trying to charge a premium
• Europe looking to increase tariffs on EV's from China
• USA may increase tariffs on EV's from China. What happens if Trump was to return to power is unknown
• The 3 Billion pile of cash that PLS had is shrinking. Wait until the next quarterly for the next update to see how far under 1 billion it is now and look to see the runway in terms of whether it will run out as they invest in upgraded facilities

It doesn't mean that PLS is badly run because of these factors but they can't just be ignored and somehow blame shorters.