Lithium Americas Corp (LAAC)

[Doktornolittle]

Prudent for Tesla to buy WL for $500M now. That would be less than 10% of the cost of their factory. Oh... I'm long.

I leaped with a brief first look... upon seeing the surge and then hearing the news, so I am in at a higher basis than most here. So of course I want sugar, and lots of it, now.

But having looked further... I think I did the right thing. The two local competitors (Developed and undeveloped brines) do not seem to have much of a resource compared to WL. And WL could have their eye on other properties, awaiting the right moment.

Li may not quite qualify as a rare earth metal, but given the large volume projected use, some of the same rationale exists to ensure US control of whatever local assets exist. The same reasoning should compel Tesla to control their own destiny in that regard. It seems to me that their best option would be to acquire WL while it is cheap at around $4/sh, develop the current operations to the point of readiness at a large throughput... then put it on hold and use Li from foreign sources for now. That would give them a large, local, ready reserve... kind of like that multi-source power grid available to them at the plant.

With a little coinage available, WL (as a subsidiary of Tesla) could also acquire any local resources that they have their eye on. Further... by delaying large scale production, Tesla could continue improvements in mill / extraction efficiency before using up the ore/clay.

If Tesla waits to purchase WL, then a bidding war could start, which could cost them, and could lead to a foreign country owning the mine. I say do it now Tesla, for your sake and for the sake of the USA. God Bless America!