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🚗 Nickel short squeeze: why Tesla is not afraid⠀
🚀 Risky but effective pursuit of vertical integration has always been the forte of any Elon Musk business. Tesla has spent years securing its own supply of
nickel, a critical component in electric car batteries. As a result, of problems associated with conflict in Eastern Europe, the company almost did not notice.
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Nickel supply stability remains a major concern in the electric vehicle industry. According to Bloomberg NEF, the demand for this metal will grow from about 400 745 tons this year to 1.5 million tons in 2030.
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Russia is a major player in the refined nickel market (approximately 17%). After the start of the conflict, the price of
nickel on the LME soared from $25,000 to $100,000, helped by speculative closing of short positions (short squeeze). They don't even try to calculate the losses from this situation.
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But Musk (NASDAQ: TSLA) has always looked for alternatives. For example, in 2021, a contract was signed with Vale SA (Canada), in January of this year, the company committed to purchasing 75,000 metric tons of
nickel concentrate from Talon Metals in Minnesota. Before that, there was an agreement with the BHP Group from Australia, as well as an agreement with the operators of a
nickel mine on the island of New Caledonia in the South Pacific.
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In addition, Tesla actively cooperates with other suppliers, for example, operates a large battery cell factory in Reno, Nevada, together with Panasonic. The company also constantly strives to improve the methods of processing raw materials and production.
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Tesla's multifactor policy in the nickel market is a hidden market advantage that allows the company to consistently stay ahead of the competition by at least a few steps. So we recommend betting on the leader!
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Profits to y’all!