Demand for electric cars is falling-Morgan Stanley
2022.12.02 08:19
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Demand for electric cars is falling-Morgan Stanley
Budrigannews.com – On Friday, Tesla (NASDAQ), shares rose 0.36 percent after Morgan Stanley confirmed their overweight rating and a target price of $330.00 to the business. As the rise in price of electric vehicles decreases, analysts say that the electric car company, as well as all electric vehicles, may be under downward pressure.
However, the current prices for the lithium equivalent of LCE of 71 thousand tons faced a significant decrease in pressure during the 23rd fiscal year due to the fact that demand for electric cars is declining, according to commodity strategists MorganStanley and a group of analysts from across the industry. In China, despite the likelihood of an interest rate cut, battery stocks have grown significantly, far exceeding the usual organic batteries on the market.
The price of LCE may suffer even more due to the expansion of the market. “If the demand for electric vehicles should be revised downward at least in the near future, due to inflation and the destruction of demand, then key indicators of raw materials, such as lithium-LCD display, should fall in order to stimulate further and long-expected reduction in prices of electric vehicles,” they write in the message.
We believe that an increase in prices for electric vehicles is absolutely necessary to realize the long-term forecast of investors about the penetration of electric vehicles into the increasingly saturated Chinese electric car market, the structurally complex European market, and the slow-moving U.S. economy.”
They believe that Tesla’s leading positions in costs and vertical integration can increase their competitiveness in a crisis. Vertical integration into the chain to create lithium value was a goal that Tesla was striving to achieve.
In Texas, the company announced tax benefits for the construction of a lithium hydroxide processing plant, where lithium hydroxide of battery qualities will be produced. This can help them deal with the problems they experienced last year when they were producing batteries.
During a telephone meeting of the company for three quarters , CEO Elon Musk replied: “We will do everything we can,” when he asked if the company was considering vertical adoption in the mining industry. We will cope with any obstacles.
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