Lithium stock forums are littered with blaming shorters on their woes, while that could not be further from the truth, but there is an issue I see with blaming external factors/parties and not wanting to understand and acknowledge why the lithium bubble has burst. The fact is that once unbridled growth expectations for EV and lithium has now been met with real challenges - (i) EV growth has tapered, (ii) car makers deferring their all electric vehicle plans, (iii) hybrids becoming the fastest growing segment, (iv) an ongoing EV price war in China, (v) lithium mines shutting down, (vi) lithium producers slowing down expansion plans, and (vii) making huge capital raising, (viii) China's struggling economy- all unfortunately providing at least a short to medium case for shorters to thrive in this sector.
By placing all blame on shorters, lithium stock HC forums have all intention to deflect the challenging issues facing the industry and sell the narrative that their stock prices woes are entirely attributable to the actions of those shorters, instead of the fact that the negative narratives around lithium is being matched by the outcomes and actions that industry players undertake.
