According to this agreement, Tesla will purchase a minimum of 17,500 tonnes per annum of “Anode Active Materials (AAM).” The deal will commence in February 2025 and includes a fixed price over at least three years as well as a “customer option to increase up to 35,000 [tonnes per annum].” Tesla will use these materials for its EV batteries.
There are several requirements that Magnis Energy has to meet to keep the deal. These include securing a final location for its commercial AAM plant by June 30, 2023, producing AAM from a pilot plant by March 31, 2024 and “commencing production from the commercial AAM facility” by Feb. 1, 2025.
Frank Poullas, Chairman of Magnis, said the following about the deal with Tesla:
“We are really excited to bring our high performing AAM to market that requires no chemical or thermal purification throughout the whole process, which differentiates this sustainable material in the market and provides great value to all parties.”
TSLA Stock Movement Today
Following news of today’s graphite deal, only around 48 million shares of TSLA stock have changed hands as of this writing. That’s below its daily average trading volume of around 166.8 million shares. Investors will also note that TSLA stock is down 1.9% as of Tuesday morning.
Investors seeking more of the latest stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock coverage traders need to know about on Tuesday! A few examples include what’s going on with tech stocks, the latest on Alibaba (NYSE:BABA) and what’s happening with Home Depot (NYSE:HD). We’ve got all of that news at the following links!
More Tuesday Stock Market News
- Tech Stocks Rally Forces Hedge Funds to Give Up on Short Sales
- BABA Stock Alert: What to Know as Ant Group Teams Up With China’s NBA League
- The REAL Reason Home Depot (HD) Stock Is Down Today
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.