Syrah Resources and Tesla Resolve Graphite Supply Deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 43 minutes ago
0mins
Source: Newsfilter
- Supply Agreement Resolved: Syrah Resources announced that Tesla has withdrawn its notice to terminate the graphite supply agreement, concluding months of negotiations and indicating positive progress in resolving issues.
- Contract Details: Under the 2021 contract, Syrah aims to supply Tesla with 8,000 metric tons of graphite anode materials over four years, further solidifying its supply position in the U.S. market.
- Market Impact: The Vidalia plant is the only large-scale vertically integrated producer of anode materials in the U.S., helping to reduce American dependence on Chinese graphite supplies, which is strategically significant.
- Compliance Issues: While Tesla has accepted Syrah's conforming samples, it retains the right to terminate the agreement if the Vidalia facility fails to achieve final qualification, highlighting the fragility of their relationship.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 442.100
Low
25.28
Averages
401.93
High
600.00
Current: 442.100
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Inventory Issues: While Tesla's deliveries rose 6% year-over-year in Q1, its inventory surged by 23%, suggesting potential overproduction, influenced by high interest rates and fierce competition, leading to sluggish sales growth.
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- Supply Agreement Resolved: Syrah Resources announced that Tesla has withdrawn its notice to terminate the graphite supply agreement, concluding months of negotiations and indicating positive progress in resolving issues.
- Contract Details: Under the 2021 contract, Syrah aims to supply Tesla with 8,000 metric tons of graphite anode materials over four years, further solidifying its supply position in the U.S. market.
- Market Impact: The Vidalia plant is the only large-scale vertically integrated producer of anode materials in the U.S., helping to reduce American dependence on Chinese graphite supplies, which is strategically significant.
- Compliance Issues: While Tesla has accepted Syrah's conforming samples, it retains the right to terminate the agreement if the Vidalia facility fails to achieve final qualification, highlighting the fragility of their relationship.
See More
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- Contract Details: Under the 2021 contract, Syrah aims to supply 8,000 metric tons of graphite anode materials to Tesla over four years from its Vidalia plant in Louisiana, which is crucial for reducing U.S. dependence on Chinese supplies.
- Production Compliance: Tesla issued a default notice in July 2025 citing compliance issues with active anode material samples from Vidalia, but has now accepted that Syrah has demonstrated compliance, indicating an improvement in production capabilities.
- Future Risks: Although Tesla has withdrawn the termination notice, it retains the right to terminate the supply agreement if the final qualification of Vidalia's materials is not achieved, meaning Syrah must ensure ongoing compliance to maintain the partnership.
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- Stock Performance Review: Tesla's shares have skyrocketed 22,250% over the past 15 years, meaning a $4,500 investment in May 2011 would be worth $1 million today, showcasing its immense success in the EV market.
- Revenue Growth Struggles: The company reported a 16% year-over-year increase in automotive revenue for Q1, totaling $16.2 billion, yet this figure is 19% lower than the same period in 2023, indicating market pressures and intensified competition.
- Inventory Issues: While Tesla's deliveries rose 6% year-over-year in Q1, its inventory surged by 23%, suggesting potential overproduction, influenced by high interest rates and fierce competition, leading to sluggish sales growth.
- Future Investment Challenges: Tesla's capital expenditures are projected to exceed $25 billion this year, significantly up from $8.5 billion in 2025, and with a price-to-earnings ratio of 402, the market's high expectations pose considerable investment risks.
See More
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- Massive Market Potential: A McKinsey survey indicates that experts predict private self-driving vehicles will become a global reality by 2032, while robotaxis are expected to scale significantly by 2030, suggesting a rapidly growing market demand that could yield trillions in economic opportunities.
- Tesla's Competitive Edge: Tesla has commenced production of its Cybercab robotaxi, with costs significantly lower than competitors, and its integrated manufacturing capabilities allow for faster and cheaper production, positioning the company favorably in the emerging market.
- Rapid Expansion Plans: Tesla has launched robotaxi pilot programs in three Texas cities and plans to expand quickly over the next 12 to 24 months, with CEO Elon Musk expecting widespread service in the U.S. by year-end, despite ongoing safety and technical challenges.
- Valuation Outlook: Cathie Wood forecasts the global autonomous taxi market could reach $8 trillion to $10 trillion, highlighting how quickly AI technology will drive market growth, with Tesla likely to be a major beneficiary in this evolving landscape.
See More
Syrah Resources and Tesla Resolve Graphite Supply Deal
- Supply Agreement Resolved: Syrah Resources announced that Tesla has withdrawn its notice to terminate the graphite supply agreement, concluding months of negotiations and indicating positive progress in resolving issues.
- Contract Details: Under the 2021 contract, Syrah aims to supply Tesla with 8,000 metric tons of graphite anode materials over four years, further solidifying its supply position in the U.S. market.
- Market Impact: The Vidalia plant is the only large-scale vertically integrated producer of anode materials in the U.S., helping to reduce American dependence on Chinese graphite supplies, which is strategically significant.
- Compliance Issues: While Tesla has accepted Syrah's conforming samples, it retains the right to terminate the agreement if the Vidalia facility fails to achieve final qualification, highlighting the fragility of their relationship.
See More
Tesla Withdraws Notice to Terminate Graphite Supply Agreement with Syrah Resources
- Supply Agreement Resumed: Australia's Syrah Resources announced that Tesla has withdrawn its notice to terminate the graphite supply agreement, ending months of negotiations and indicating positive progress in resolving issues between the two companies.
- Contract Details: Under the 2021 contract, Syrah aims to supply 8,000 metric tons of graphite anode materials to Tesla over four years from its Vidalia plant in Louisiana, which is crucial for reducing U.S. dependence on Chinese supplies.
- Production Compliance: Tesla issued a default notice in July 2025 citing compliance issues with active anode material samples from Vidalia, but has now accepted that Syrah has demonstrated compliance, indicating an improvement in production capabilities.
- Future Risks: Although Tesla has withdrawn the termination notice, it retains the right to terminate the supply agreement if the final qualification of Vidalia's materials is not achieved, meaning Syrah must ensure ongoing compliance to maintain the partnership.
See More
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- Oil Price Increase: Crude oil prices rose on Sunday as President Trump reportedly tightened the terms of the Iran deal, reflecting market sensitivity to geopolitical risks that could lead to future supply constraints, thereby impacting global oil price trends.
- Market Reaction: The rise in oil prices may positively affect energy stocks, particularly those reliant on stable oil prices, prompting investors to reassess these companies' profitability and market performance.
- Tech Stock Performance: Nvidia and Tesla, among five tech giants nearing buy points, indicate sustained market interest in high-tech stocks, potentially attracting more investors to focus on these companies' growth potential.
- Investor Sentiment: With the dual impact of rising oil prices and tech stock performance, investor sentiment may become more optimistic, driving overall market upward, especially in energy and technology investment activities.
See More
SpaceX Poised to Become Next Trillion-Dollar Company
- New Member of Trillion-Dollar Club: SpaceX is planning an IPO in a few weeks with a target valuation of nearly $2 trillion, which, if achieved, would set a record for the largest IPO in history, showcasing its immense potential in the aerospace and tech sectors.
- Financial Challenges and Growth: Despite reporting a net loss of approximately $4.9 billion last year and over $12 billion in capital expenditures for its AI division, SpaceX's annual revenue has surged from $10 billion to $18 billion, indicating a mix of challenges and opportunities in its rapid growth.
- Rising Capital Expenditures: The company has seen capital expenditures exceeding $3 billion for its space operations and $4 billion for connectivity, with both areas experiencing rising investments over the past three years, reflecting its commitment to technological advancement.
- Investor Risk Assessment: While SpaceX may attract aggressive investors, its success hinges on achieving various technological goals, making it less suitable for conservative investors seeking stable returns.
See More
