Part 8/11:
Supply Chain and Raw Material Strategy: Lithium Prices Drop
A crucial factor influencing Tesla’s margins and production costs is lithium prices—a key raw material in EV batteries. Recent reports highlight a significant drop in lithium prices, which could translate into lower battery costs and improved profitability for Tesla and the broader EV industry.
The trend in falling lithium prices underscores Tesla’s potential advantage in managing raw material costs, especially as competition intensifies and margins come under pressure. If lithium prices stay low, Tesla could maintain or even expand its pricing flexibility, potentially leading to more aggressive market share growth.