I found something strange when he answered the question.
Why he mentioned this first:
"There is Lithium in salt form virtually everywhere, so there is definitely no supply issues with Lithium. But, to answer the question more precisely… “In the next year or two years, will there be enough Lithium in the form that Tesla needs, which is Lithium Hydroxide, in sufficient quantities, at a price that is reasonable, and does not materially affect the cost of the Model 3?…. Um… Over to JB….” (Laughter)" >sounds hesistant.
He should answer this straight away:
"It is also worth mentioning that, although it’s called Lithium Ion, the actual percentage of Lithium in a Lithium Ion cell is approximately 2%. Technically our cells should be called ‘Nickel’ or ‘Nickel Graphite,’ because the primary constituent in the cell as a whole is Nickel, and then the anode side is Graphite with a Silicon Oxide. There is a little bit of Lithium in there, but it is like the ‘salt on the salad,’ you know, it’s a small percentage of the mass. It’s still important to avoid supply constraints and to make sure the tail doesn’t wag the dog on cost, but the main determinants of the cost of are the price of Nickel in the form that we need it, and there a bit of Cobalt and Aluminum, and then the cost of the synthetic Graphite with the Silicon Oxide coating." if he's confident.
I think I agree with CYMON. He tried to make customer happy.
PLS Price at posting:
66.0¢ Sentiment: Buy Disclosure: Held
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