Date : 15/01/2021

Thanks to Tesla, These ASX Nickel Stocks Just Got a Big Upgrade

Nickel and Electric Cars

Tesla’s Battery Day event that was held in September 2020 brought a lot of tailwinds to the nickel stocks. Tesla outlined how they want to move out of cobalt for their battery production as it is too expensive. The company went on to state that they want to produce more batteries and they want to use nickel because of the low-cost production costs.

The Tesla share price on the other hand brings loads of attention as it is the most shorted stock in the whole world. Even among Australian funds, Tesla continues to be the most shorted stock. The Tesla share price however, has continued to sky-rocket despite the selling pressure.

With a lot more car markers now entering the EV market, the demand for nickel is forecasted to continue rising as the battery segment heats up. Forecasts for nickel are high and as a result ASX nickel stocks have been performing well.

Best ASX Nickel Stock to Buy

Nickel Mines Limited (ASXL NIC) is one of the best nickel stocks on the ASX. The stock currently trades at $1.26 and demands a market capitalisation of over $3 billion. The past 3 months have turned out to be spectacular for the company – a 66% return and 104% return in the past 6 months.

Other Nickel Stocks

There are a couple of other nickel stocks that look promising as well. Western Areas (ASX: WSA) and Panoramic Resources (ASX: PAN) have also performed well over the last few months. They have been boosted by the wind in the sales of the nickel industry as a whole.

Conclusion

Nickel will play a big role as the automotive industry will shift towards EV. Following macro trends is very important to pick up the sectors that will be reinforced with tailwinds. At Shares in Value, we pick up on macro trends and help you pick stocks that will perform the best.

 

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