In Monday's premarket, Tesla stock was nearly 4% higher after the business awarded a three-year contract to China's Ganfeng (SZ:002460) to supply battery-grade lithium components.
The deal for Ganfeng ensures supplies of a vital input for the world's largest EV manufacturer at a time when raw material linkages, some of which are rare in the EV chain, are in short supply.
Ganfeng is already a well-known supplier of battery-grade lithium to electric vehicle manufacturers such as Tesla.
The contract's sales amount and value are still pending Tesla's purchase orders, Ganfeng stated in a filing to the Shenzhen Stock Exchange on Monday.
Tesla is currently focusing on launching production at two new factories by the end of the year, one in Austin, Texas, and the other outside of Berlin. Those plants are critical to maintaining growth that has confounded critics in the last 18 months: third-quarter output was up 64% year on year at 237,823 vehicles, with deliveries up even higher, thanks largely to the company's Shanghai factory. Automotive revenue increased by 58% to $12.05 billion, while total sales increased by 57% to $13.75 billion, a new high.
Tesla's shares hit a new all-time high of $1,094.94 on Wednesday, making it the first automaker to reach a market valuation of $1 trillion. The stock has gained traction in recent weeks as a result of a large order of 100,000 vehicles from auto rental company Hertz Global, which many perceive as a watershed moment in the mainstreaming of electric vehicles.