Hi Simon, Global recession will not be good for any sales...

Hi Simon,
Global recession will not be good for any sales anywhere?
I don’t know if potential EV buyers in the USA fear such a thing but It may be a factor ?
And 20% fewer August Tesla sales than last August’s 17,800 is a reduction of 3,560 vehicles .
It would be interesting to see if some potential buyers chose a competitor ?

..Also August sales have not yet made it on to this chart in your story ?
But it shows June sales were third highest month on record .


I feel there are plenty of factors at play regards the decision to buy a new car, and affordability is an issue that is still being worked through
I have wanted to get a ‘new’ car for a whole now but decided it’s better to switch to a second hand ‘transition’ vehicle while the EV industry gets off the ground a bit more .

Also, as Ken Brinsden said, the commentary down talking the current state of lithium markets is in contrast to
“the significant interest we have continued to see from strategic players in the lithium-ion supply chain”.

“In particular, the focus is on the quality and security of the lithium raw material supply and matching the raw material demand growth to growth downstream,” he said.”

https://thewest.com.au/business/min...sings-to-tip-111m-into-coffers-ng-b881312445z

Spoiler : PLS deal with CATL

Pilbara Minerals deal with Chinese battery giant Contemporary Amperex Technology and raisings to tip $111m into coffers

Stuart McKinnonThe West Australian
September 4, 2019

Pilbara Minerals is selling 8.5 per cent of the company to China’s biggest maker of electric vehicle batteries as part of a big fundraising that will bring more than $111 million into its coffers.

After going into a trading halt last week, Pilbara said today Contemporary Amperex Technology (CATL) would take up $55 million of new shares in the WA lithium miner at 30¢ a share alongside institutional and sophisticated investors who will contribute a further $36.5 million.

A $20 million share purchase plan will give retail investors a chance to also take up the cheaper stock, increasing the total funds raised to $111.5 million.

Pilbara said the funds would bolster its balance sheet, enable it to take part in a proposed downstream processing joint venture with South Korean steel giant POSCO, help with the ramp-up of its Pilgangoora lithium project near Port Hedland and support its stage two expansion.

The raising coincides with a slump in lithium prices amid an oversupply of the commodity, on the back delays in the expansion of chemical conversion capacity in China partly caused by a change in the country’s electric vehicle subsidy regime.

The market indigestion last week forced fellow lithium miner Alita Resources into administration.

But Pilbara managing director Ken Brinsden said “commentary talking down the current state of lithium markets” had belied “the significant interest we have continued to see from strategic players in the lithium-ion supply chain”.

“In particular, the focus is on the quality and security of the lithium raw material supply and matching the raw material demand growth to growth downstream,” he said.

Pilbara has been forced to slow mining activities and run its processing plant on a campaign basis this quarter because of slowed demand for its product from China.

The company expects to produce just 20,000-35,000t of spodumene or lithium concentrate this quarter but forecasts a bounce to 65,000-80,000t in the December quarter as demand picks up.

At the end of June, the company had more than 50,000t of spodumene in stockpiles at its mine.

Pilbara had about $63 million in the bank at the end of June, but expected outflows of $66 million this quarter.

The raising comes after its decision last week to shelve plans for a sale of up to 49 per cent of its flagship Pilgangoora project near Port Hedland and scale back a proposed $231 million expansion of the mine.

Mr Brinsden said CATL supported the new phased expansion strategy for Pilgangoora that will lower the upfront capital expense of the project and better match supply with demand from customers.

The company has also offered to buy excess spodumene concentrate that might be available if the company’s existing customers fail to meet their offtake commitments.

CATL is responsible for 40 per cent of China’s battery production, supplying electric vehicle manufacturers including Toyota, BMW, Volkswagen and Honda.”

I think the supplier are genuinely looking at the big picture here, whatever current sentiment or even sales..
Cheers