Tesla Stocks Surge as it Inks Supply Deal with Ganfeng

On Monday, stocks of Tesla surged after it sewed up a three-year deal with Chinese lithium producer Ganfeng.

Accordingly, the world’s largest EV firm rocketed 8.49% or 94.59 points to $1,208.59 per share.

In the post-market trading, it followed its hike as it rose 0.88% or 10.61 points to $1,219.20 per share. 

In addition, it is the first automaker to stand with a market capitalization of $1.21 trillion. 

The latest contract marked the security of battery-grade lithium products for Tesla amid the persisting supply crunch in the industry. 

Subsequently, the latest contract would start in 2022 to 2024. Meanwhile, both of the companies did not disclose the sales amount and value of the agreement. 

Aside from Tesla, Ganfeng, the world’s leading lithium company by market capitalization, already established supplies of battery-grade lithium to other EV producers. 

At the same time, it also boosted 9.32% or 1.76 points to $20.65 per share, 60.00% higher this year. 

Moreover, Tesla also focused on its two new factories in Texas and Berlin that would start production by year-end. 

Remarkably, the plants are vital to sustaining its growth that had defied projections in the last 18 months. 

Wall Street Hikes as Tesla Rises

Furthermore, Tesla also buoyed US stock indexes as investors looked forward to the significant Federal Reserve meeting this week. 

Consequently, the Dow Jones Industrial Average advanced 0.26% or 94.28 points to $35,913.84 per share. 

At the same time, the benchmark Nasdaq Composite climbed 0.63% or 97.53 points to $15,595.92 per share. 

Likewise, the S&P 500 index jumped 0.18% or 8.29 points to $4,613.67 per share. 

Inversely, other stocks opposed the recent increase of Tesla. 

For instance, video game developer Roblox plummeted 3.43% or 2.88 points to $81.14 per share. 

Similarly, beverage company Coca-Cola lost 0.35% or 0.20 points to $56.17 per share.

Read also: Uptos review | What to Consider Before Trading?