Tesla announced its planned Rare Earths free EV, MP Materials stock cratered and then bounced back
No sooner had MP Materials (MP) pleasured the market on its earnings, then Tesla announced a new Rare Earths Free EV initiative that tanked MP and other REE stocks (e.g. Lynas, the largest non-Chinese REE producer) on the news. As NFTRH subscribers know, I’ve had MP stock on watch continuously due to its strategic ‘US-producer’ status. I added it on the big down day last week, not even knowing why it tanked (no company-specific news).
Well, thanks to an astute person who provides me with quality news flow and research, I now know. You can click the graphic for the article at QZ.com (which I have added to the website’s links page, where you will find many quality outside links):
As for MP Materials stock, it’s a fairly neutral situation currently. You can see the Tesla hit that drove it below the 200 day moving average on Thursday and the immediate pop back up from it on Friday as the hype wore off and morphed into moderation. Check out the article linked above for reasoning about why the Tesla ‘Rare Earths free EV’ hype was overblown.
I don’t know if this will be my ultimate hold on this strategic stock for the future or not. The market (and the stock’s technicals) will decide that. But for now, I found the article very informative and now the last two days of the chart’s history make sense.
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