MP Materials’ pullback on Tesla comments ‘an overreaction,’ says Northland

Northland believes the recent pullback in MP Materials is "an overreaction and simply unjustified," arguing this presents "another opportunity for MP investors to buy the dip." Tesla (TSLA) indicated in its analyst day meeging that it would be reducing the amount of rare earth materials in its powertrains and MP shares were down 12% driven by the news, but the firm’s view is that Tesla’s announcement "only underscores the issue of limited supply for NdPr" and further highlights the importance of MP being the largest NdPr producer in North America. Northland keeps an Outperform rating and $48 price target on MP Materials shares.