I still have much to learn but I appreciate your compliment.
I agree with your thinking too and enjoy your posts. I've recently been reading through all the Syrah posts from the last two years and some people question the value of a Tesla offtake; usually saying that it would be on strict terms, or that the bigger game is with other manufacturers. I completely disagree with such negative sentiments. A Tesla offtake would be a watershed moment. It would be a stamp of approval from the standard in electric vehicle manufacturing. How many other manufacturers will be lining up for Syrah's product if Tesla wants it? And what would the affect be on stock market psychology?
A Tesla offtake, in my opinion, would:
(1) Result in a higher intrinsic value due to increased future cash flows from Tesla and the other manufacturers that such an offtake would inevitably attract; and
(2) Markets would allocate a higher pricing multiple for Syrah due to the halo effect of being linked to Tesla.
Cheers.
SYR Price at posting:
$3.11 Sentiment: Buy Disclosure: Held
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