With the electric vehicle market continuing to heat up, getting hands on the necessary supplies to put the vehicles together only becomes more vital. Recently, Tesla (NASDAQ:TSLA) made a move to land a new source of graphite. Oddly, the market isn’t taking the news well, as Tesla is down slightly in Tuesday afternoon trading.
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Tesla’s new deal connects it to Magnis Energy Technologies (OTC:MNSEF), which will supply Tesla with graphite in multi-ton quantities. Starting in February 2025, Magnis will supply at least 17,500 metric tons annually. Eventually, that may reach as high as 35,000 tons. Reports suggest that the deal will run for at least three years. Thanks to Magnis’ production, it notes that no further thermal or chemical measures are necessary to purify the graphite.
This isn’t the first such move Tesla has made, either. It’s been working to secure its supply chain of electric vehicle-related minerals for some time now. Reports suggest that Tesla already has an eye on purchasing Sigma Lithium (NASDAQ:SGML), a move that sent Sigma stock blasting upward. An offtake deal with Piedmont Lithium (NASDAQ:PLL) is also in the works, and there are other firms lining up to route various minerals to Tesla. Tesla can certainly use the support, especially given its recent declining performance in China.
Overall, analyst consensus calls Tesla stock a Moderate Buy with an average price target of $202.46, giving it 0.38% upside potential.
