Core Lithium (ASX:CXO) shares fall after collapse of Tesla deal

October 27, 2022 02:25 PM AEDT | By Sonal Goyal

Core Lithium (ASX:CXO) shares fall after collapse of Tesla deal — Image source: © Gavinp101 | Megapixl.com

Share performance of Core Lithium

Core Lithium shares were spotted trading 2.75% lower at AU$1.42 per share at 11:19 AM AEDT. Meanwhile, the benchmark index, ASX 200 Materials (INDEXASX:XMJ), was 2.02% up at 15,900.10 points at 11:40 AM AEDT.

Core Lithium’s share price has surged by 6.39% in the last five trading sessions. In the last 12 months, the shares have zoomed up by 148.25%, and on a year-to-date basis, they have shot up by 124.60%.

What now?

Core Lithium said it is well positioned to benefit from constrained lithium supply and strong global demand with the official opening of the Finnis Lithium Mine and the underwritten share placement to fund accelerated resource definition.

The international demand for Finnis produce is evident from the sale of 15,00 tonnes of direct shipping ore (DSO), as per the company’s announcement on the ASX, and the demand for spodumene DSO material is strong, as indicated by the price achieved.

The company expects the DSO to be shipped before the year's end.

Moreover, Core Lithium highlighted that the agreements with Yahua and Ganfeng take the total concentrate sales to around 80% of Finnis Lithium production for the first four years of operations.

Gareth Manderson, CEO of Core Lithium, commented on the development:

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