During that event, founder and CEO Elon Musk spoke about several things that affect SGML stock. That includes saying that Tesla is more interested in refining lithium than it is in mining it. This has deflated rumors that the electric vehicle (EV) company was considering an acquisition of Sigma Lithium.
Backing this idea up is the company’s upcoming lithium plan in Corpus Christi, Texas. This facility is being created for the purpose of refining lithium concentrates into lithium chemicals for use in EV batteries.
More Bad News For SGML Stock
To go along with this, Tesla pointed out that it plans to develop EVs that won’t make as much use of rare earth metals. Specifically, the company intends to create a next-generation EV with an engine that doesn’t require the components.
And it’s not just SGML stock that’s being affected by this announcement. MP Materials (NYSE:MP), a supplier of rare-earth metals to automobile companies, saw its shares take a beating following Tesla’s next-gen EV plans.
As for how much the news affected these stocks, shares of SGML are down about 1% after a deeper dip this morning while MP stock is down 12.6% as of Thursday morning.
There’s even more stock market news traders need to know about at the links below!
We’ve got all of the hottest stock market coverage for traders to sink their teeth in today! A few examples include more tails on the Tesla news. That includes how it affects chip stocks, as well as more details on MP, and what it’s done to Wolfspeed (NYSE:WOLF) shares on Thursday. You can find all that at the following links!
More Thursday Stock Market News
- Why Are Chip Stocks Down Today?
- Tesla Sends MP Materials (MP) Stock Down 11%
- Tesla Sends Wolfspeed (WOLF) Stock Down 11%
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.