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In this video, I cover why I believe Tesla just secured a hidden contract with the largest nickel mining company in the world.

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The electric vehicle revolution is accelerating faster and faster, and it’s quite obvious that electric vehicles are our future. In fact, Tesla already sold out on its vehicles for the entire 2nd quarter of 2021. In Tesla’s Q1 earnings conference call, Elon explained how “we’ve seen a real shift in customer perception of electric vehicles and our demand is the best we’ve ever seen. We’re used to seeing a reduction in demand in the first quarter and we saw an increase in demand that exceeded the normal seasonal reduction in demand in Q1.” Yet, while demand for EVs has certainly increased, there is one major issue: whether the supply can be fulfilled. More specifically, the problem centers around whether there will be enough Nickel supply that can support the exponential growth in EVs. Elon has publicly spoken about this issue before but it seems as if his concerns have died down for a reason that I’ll explain. In this video, I’ll cover why I’m doubling down on one mining stock that I believe is extremely undervalued and may have just signed a massive multi-year nickel contract with Tesla.
Now, I’m not going to hold you hostage to tell you the stock I’m doubling down on. The stock I’m talking about is Vale Mining, ticker symbol VALE. And if this company sounds familiar, it’s because I talked about it in a previous video. Before you have preconceived notions about this stock, allow me to explain why I see Vale as a low-risk high-reward investment over the next few years. I first spoke about Vale Mining at the beginning of 2021, where I explained how I believed that Vale Mining was going to secure a Tesla partnership and benefit tremendously from the EV revolution. Over the past couple of months, this thesis has only gotten stronger and stronger after some groundbreaking news was announced. First of all, you might be wondering, what is Vale Mining? Vale Mining is one of the largest mining companies in the world with operations primarily in Brazil but also Canada and Indonesia. The company mines iron, nickel, manganese, copper, and coal. However, the only major materials that are mined in that list are iron, nickel, and copper. According to Vale’s 20-F filing, roughly 78.8 percent of its total revenue in 2020 was from iron ore or iron ore pellets. After that, Nickel and copper came in at 12.5 percent and 5.4 percent of Vale’s total revenues respectively. In the short term, Vale’s growth is coming from the rising commodity prices, especially with iron. Iron has been in a shortage and as a result, prices are skyrocketing in the short term. However, the long term potential lies in Nickel and potentially copper, which is where Tesla and EVs come into play. First of all, let’s start with why I believe Vale may have secured a secret partnership with Tesla recently. Back in October of 2020, multiple sources announced that Vale Mining was in talks to secure a nickel mining deal with Tesla. Mark Travers, who is Vale’s executive director of base metals, told Reuters that Vale and Tesla were in talks for a nickel contract. He stated that “the nature of the discussions I’m sure that is occurring across the industry right now, and without specifically commenting on Tesla, those are the conversations we are having right now.” After that, when he was asked whether Vale and Tesla were in talks, Travers said “Yes, absolutely.” A few days later, Vale’s CFO confirmed that Tesla came to Vale to discuss the possibility of securing a nickel contract.
Already, the fact that Tesla came to Vale and not the other way around shows a hidden power pyramid. As the largest nickel mining company in the world, Vale has the leverage, not Tesla. Now, that part may seem relatively speculative, but take a look at what happened recently. In Vale’s most recent earnings report, Vale announced that they have plenty of buyers and they recently signed a quote-unquote “significant” multi-year nickel mining contract with an OEM.
Now, I do think that Tesla could have been behind this nickel contract simply because of how many clues point to this. This first clue is not a credible source, so take this with a grain of salt, but according to Vale’s Wikipedia page, Tesla is known to purchase the majority of their Nickel from Vale.