From Torque News.
Tesla May Greatly Benefit From New Lithium Reality and Cut Prices Again. Falling lithium prices in China may lead to another Tesla price cut.
While the cost of lithium is intertwined with the cost of EVs, we don’t have a concrete evidence that a drop in lithium prices will lead to a drop in EV prices, let alone another price cut by Tesla.
Also, we have heard that Tesla has the most flexibility regarding its vehicle pricing, but I don’t have solid data to back up this assertion.
As I am going to tell you this story, please keep in mind that the price of EVs is already unprofitable for many automakers, which suggests that the industry may not be able to sustain another round of price cuts.
So what happened? Tesla is poised to benefit from rapidly dropping lithium prices, particularly in China, where the automaker produces nearly half of its vehicles.