Tesla (NASDAQ: TSLA) could be considering setting up a lithium refinery in Texas. Tesla stated in an application filed with the Texas Comptroller’s Office, that this would be a first-of-its-kind battery-grade lithium hydroxide refining facility in North America and will process “raw ore material into a usable state for battery production.”
Tesla added that its decision to invest in Texas would depend on tax breaks on local property taxes. If the application is approved, Tesla would begin constructing the refinery by the end of this year and will start producing lithium commercially by the end of 2024.
The electric vehicle (EV) major’s CEO Elon Musk had earlier called for more players when it comes to the lithium refining industry as lithium prices have surged due to soaring demand from EV players.
Is Tesla a Strong Buy?
Analysts are cautiously optimistic about TSLA with a Moderate Buy consensus rating based on 19 Buys, five Holds, and six Sells.
TSLA’s average price target of $308.98 implies that the stock has an upside potential of 6.8%.
