Alabama Graphite Corp. Com ABGPF

RE:Prediction

[east4west]

Vertical Integration
In the race for EV “dominance” and “first to market advantage” one has to be fully integrated with all critical inputs. Tesla clearly has the first to market advantage, but others are hot on their heels. So Tesla took the next step to secure the single most important item of an EV, the battery. As a result, they once again have the “first to market advantage” with their Giga factory. But, other Giga factories are not far behind as several new plants have been announces around the world. So the next logical step is to secure a fully integrated supply of premium raw materials that support the brand. Those two major components are Lithium and Graphite, both of which are in limited supply due to a lack of production.  
Tesla announced in the summer that they signed a letter of understanding with a Lithium miner called Pure Energy. The miner is not even close to production, yet Tesla was compelled to secure the future supply. As a result this non domestic mine immediately gained creditability. Rest assured that Tesla’s competitors took notice as once again Tesla had a “first to market advantage”
Tesla will also be looking for a reliable, cost effective and ethically sourced supply of graphite. North America had lots of concept mines, but nothing proven. Until now of course – Alabama Graphite has both proven quality and resource with the samples and PEA. Let alone the mine being in the United States that offers political stability, logistical advantage and ethical environmental standards.
Alabama Graphite PEA came in at an attractive level. I am confident that Tesla or anyone of the other manufactures in the race to build EV’s are aware of the valuation. The easiest thing for these manufacturers to do is lock up Alabama Graphite with a “letter of intent”. The cost to the manufacturer is minimal, yet it is like money in the bank for the new mine. A solid commitment allows us to obtain financing and speed the permitting process.
The management at AG is brilliant in their timing of this press release. It is allowing interested parties to review the PEA over an extended weekend and consider an offer. I would suspect that we will see strong market activity on Monday and then a major announcement shortly thereafter. It would not surprise me in the least if there was even a take- over or merger offer.
Tesla Steps:
1)       Prove concept ( Tesla Roadster)
2)      Obtain financing ( went public and partnered with other innovators in the industry)
3)      Obtain assembly plant (Fremont)
4)      Build brand and increase production ( model S and X)
5)      Announce mass production plan ( model 3 )
6)      Control inputs to allow for cost reduction ( Giga plant)
7)      Control cost inputs ( vertical integration)
8)      Mass production ($35,000.00 price point)  
 
Now if I was a Tesla competitor and tiered of the pressure from the company board about the EV market. Or even a technology company that was eyeing the timing to enter the EV market, I would see this as an opportunity. With a quick response in securing the Alabama resource I would not only secure.

IMHO