ALB - Tesla's Resurgence Is Great News for These 3 Growth Stocks
2024-07-13 03:05:00 ET
With Tesla stock up nearly 40% over the last month and the company releasing better-than-expected car-delivery data in the second quarter, it's time to start thinking that the bottom might be in for the electric vehicle (EV) market. If so, then investors should take a look at stocks like lithium miner Albemarle (NYSE: ALB) , machine vision company Cognex (NASDAQ: CGNX) , and ON Semiconductor (NASDAQ: ON) because they will all do well with a better EV market.
More precisely, the batteries that power EVs need lithium. That's the key demand driver for lithium and why investors in lithium stocks always focus on the EV market when considering the demand side of the equation. Albemarle is the leading player in the market, and its stock has come under pressure as EV sales growth has slowed and lithium inventories are relatively high.
These factors have resulted in a downtrend in the price of lithium carbonate such that it's now six times less than its peak in the winter of 2022.
For further details see:
Tesla's Resurgence Is Great News for These 3 Growth Stocks