By flagging a disruptive tech that doesn’t work and may never work that is at least 3 years away Elon has stopped the expansion of Li O battery production. This at a time when the global economic recovery by governments was focussing on converting to green energy and carbon emission reduction, which requires LLBs. No one is going to spend the vast sums needed to expand the supply chain for a product that is flagged for redundancy. When Elon goes to LG CHEM et al for an additional 500,000 units of car batterys where is he going to get them, the answer may well be sorry we can’t supply. So his Ute and semi are gone for at least 3 years. He also invites the Osborne effect. Who would buy a Tesla now when you are told they will be much cheaper with new tech in 3years. I wouldn’t. Elon is Elon and he had better be right because the potential damage he has wrought demands it. Where does this leave NVX. Well expansion of pure graphite production will cease unless you can lock in decade long contracts. The sale of DPMG cathodes may well be disrupted due to the lack of growth in battery supply. Alternatively EV and GSS makers will have to ignore Tesla , a fundamental schism in a new industry. Feral
NVX Price at posting:
$1.52 Sentiment: Hold Disclosure: Held
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