EVs will continue to grow in demand, everyone buying now doing...

EVs will continue to grow in demand, everyone buying now doing even a cursory amount of due diligence will know that prices of new EVs are dropping at the moment, and in the next few years two things will happen, 1) prices will stabilise and 2) better battery tech will reduce the range premium (eg going from 250 to 400km of range is 60% more but going from 1000 to 1150 is only 15% more range and most people will be happy with 1000km)

As time goes on, the value of EVs keeps growing as the energy input cost gap compared to running an ICE will keep growing. 30 years ago fuel was 60c, now it's $1.80 and in 30 years it'll be $5.40. the price of solar energy 30 years ago was 0 and with inflation in 30 years time it will still be 0.

Going back to PLS, the real question is what does this mean for the share price? Every calculation I do at the moment says it's overvalued. It looks like the next 18 months revenue will eaten by capital expenditure on P680 and P1000, and following that, the NPV of 30 years of future cash flows at today's Li price is around $5B.


They've got a few other irons in the fire, and similarly the risk of Li falling further can't be discounted, so I'm really interested in what the path to future share price growth is.