Wanna Play $TSLA but no Money? $VALE
TLDR: $TSLA is likely partnering with $VALE to produce the insane quantity of Nickel needed to make Tesla’s vehicles, this is almost certainly happening for the following reasons…
READ FULL BEST DD ON WSB
- $VALE is the largest nickel producer in the entire world, with Tesla constantly calling for more Nickel production the partnership potential for these two companies is a match made in heaven.
- $VALE notified creditors on September 14th that it was paying off it’s $5 billion debt, suggesting a large deal leveling them an insane amount of capital.
- $VALE’s trading volume is up 37% from it’s average and has bullish whale activity in the options chain.
- Earlier this month, $VALE announced that they would be paying an extra dividend, on top of their regularly scheduled dividend, reinforcing the thesis of a strong balance sheet
- Tesla and $VALE already have a history of being bidirectional business partners for over a year.
- Conservative estimates reveal Tesla's growth plan leaves $VALE’s competitors ill equipped to deal with the demand for nickel Tesla needs to produce it's vehicles within five years.
>>>TESLA NEEDS NICKEL<<<
If there is one to take away from this post, it is the fact that Tesla vehicles need nickel and insane quantities of it. No one is better equipped to supply nickel to Tesla than $VALE. During Tesla’s Q2 earnings call, Elon painstakingly laid out how badly they were looking for a nickel producer.
“Well, I’d just like to re-emphasize, any mining companies out there, please mine more nickel. Okay. Wherever you are in the world, please mine more nickel and don’t wait for nickel to go back to some long — some high point that you experienced some five years ago, whatever. Go for efficiency, obviously environmentally-friendly nickel mining at high volume. Tesla will give you a giant contract for a long period of time, if you mine nickel efficiently and in an environmentally-sensitive way. So hopefully this message goes out to all mining companies. Please get nickel.”
>>>THE STARS ALIGNED<<<
The following points are largely circumstantial evidence, however when stacked together create an extremely powerful narrative and points toward the extreme likelihood of $VALE actually having lined up a revolutionary deal with Tesla.
Quotes from Tesla Q2 2020 Earnings Call
“There’s so much to be excited about. It’s really hard to kind of fit into this call, but the sheer amount of hardcore engineering, especially on the autonomy and the manufacturing/engineering front is mind-blowing. And then of course there’s Battery Day, which is coming up pretty soon. And I think that’s really going to surprise people by just how much there is to see.”-Elon Musk
“Yeah. The real limitation on Tesla growth is cell production at affordable price. That’s the real limit. So that’s where — we’re going to talk about — a lot more about this on Battery Day because this is a fundamental scaling constraint. And any part of that supply chain or processing at the cell level will be a limiting factor. So whatever it may be, anywhere from mining to refining — there’s many steps from refining to cathode and anode, cell formation. Whatever the choke point is, that will set the growth rate. And so we expect to expand our business with Panasonic, with CATL, with LG, possibly with others, and there’s a lot more to say on that front on Battery Day.”-Elon Musk
“Well, I’d just like to re-emphasize, any mining companies out there, please mine more nickel. Okay. Wherever you are in the world, please mine more nickel and don’t wait for nickel to go back to some long — some high point that you experienced some five years ago, whatever. Go for efficiency, obviously environmentally-friendly nickel mining at high volume. [Tesla will give you a giant contract for a long period of time]