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Tesla (TSLA) Inks Major Lithium Supply Pact With Core Lithium
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Tesla (TSLA - Free Report) recently signed a deal with Australia's Core Lithium Ltd. Per the deal, Core Lithium will supply the auto magnate with 110,000 tons of lithium spodumene over four years from its flagship Finniss Project in Australia's Northern Territory.
The first lithium production from the Finniss project is scheduled for the fourth quarter of 2022, and the supply to Tesla is expected to begin in the second half of 2023. The supply deal with Tesla represents about 20% to 25% of Core Lithium’s expected production over the four years.
The pact comes in the face of surging demand for battery metals such as lithium, nickel and cobalt due to the boom in electric vehicle (EV) sales in a bid to aim for a more sustainable future. The lithium supply chain has expanded tremendously over the past year. This has necessitated boosting the global lithium production as it is one of the crucial components used in batteries for EVs.
Core Lithium, the operator of the Northern Territory's newest mine, began construction on its lithium mine in October 2021. During the same timeframe, it secured the Chinese regulators' nod to supply the raw material used in making EV batteries to Ganfeng Lithium, one of the world's top producers of lithium chemicals.
The strategic deal with Tesla links Core Lithium with one of the most coveted global electric car makers, opening up doors to more growth opportunities.
Shares of TSLA have gained 41.6% over the past year, outperforming its industry’s 3.3% rise.
Image Source: Zacks Investment Research
Tesla hit an incredible milestone in the fourth-quarter of 2021, with record deliveries and production. Most importantly gross margin, excluding credits, came in at +29.2% — at an all-time record high. High volumes are aiding Tesla to achieve cost and production efficiencies, thereby strengthening margins. Over a multi-year horizon, Tesla anticipates achieving 50% average annual growth in vehicle deliveries. Along with high automotive revenues, Tesla’s energy generation and storage revenues are also growing thanks to positive reception of Megapack and Powerwall products. Currently, TSLA has a Zacks Rank #1 (Strong Buy).
Harley-Davidson has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 21.7% upward in the past 60 days.
Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.59%, on average. The stock has rallied 17.7% over a year.
LCI Industries has an expected earnings growth rate of 27.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 15.9% upward in the past 60 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. LCII pulled off a trailing four-quarter earnings surprise of 12.86%, on average. The stock has declined 4.7% over a year.
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Tesla (TSLA) Inks Major Lithium Supply Pact With Core Lithium
Tesla (TSLA - Free Report) recently signed a deal with Australia's Core Lithium Ltd. Per the deal, Core Lithium will supply the auto magnate with 110,000 tons of lithium spodumene over four years from its flagship Finniss Project in Australia's Northern Territory.
The first lithium production from the Finniss project is scheduled for the fourth quarter of 2022, and the supply to Tesla is expected to begin in the second half of 2023. The supply deal with Tesla represents about 20% to 25% of Core Lithium’s expected production over the four years.
The pact comes in the face of surging demand for battery metals such as lithium, nickel and cobalt due to the boom in electric vehicle (EV) sales in a bid to aim for a more sustainable future. The lithium supply chain has expanded tremendously over the past year. This has necessitated boosting the global lithium production as it is one of the crucial components used in batteries for EVs.
Core Lithium, the operator of the Northern Territory's newest mine, began construction on its lithium mine in October 2021. During the same timeframe, it secured the Chinese regulators' nod to supply the raw material used in making EV batteries to Ganfeng Lithium, one of the world's top producers of lithium chemicals.
The strategic deal with Tesla links Core Lithium with one of the most coveted global electric car makers, opening up doors to more growth opportunities.
Shares of TSLA have gained 41.6% over the past year, outperforming its industry’s 3.3% rise.
Image Source: Zacks Investment Research
Tesla hit an incredible milestone in the fourth-quarter of 2021, with record deliveries and production. Most importantly gross margin, excluding credits, came in at +29.2% — at an all-time record high. High volumes are aiding Tesla to achieve cost and production efficiencies, thereby strengthening margins. Over a multi-year horizon, Tesla anticipates achieving 50% average annual growth in vehicle deliveries. Along with high automotive revenues, Tesla’s energy generation and storage revenues are also growing thanks to positive reception of Megapack and Powerwall products. Currently, TSLA has a Zacks Rank #1 (Strong Buy).
Other Key Picks
Other top-ranked players in the auto space include Harley-Davidson (HOG - Free Report) and LCI Industries (LCII - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Harley-Davidson has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 21.7% upward in the past 60 days.
Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.59%, on average. The stock has rallied 17.7% over a year.
LCI Industries has an expected earnings growth rate of 27.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 15.9% upward in the past 60 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. LCII pulled off a trailing four-quarter earnings surprise of 12.86%, on average. The stock has declined 4.7% over a year.