How the War in Ukraine Affects Tesla and Electric Cars

Russia’s invasion of Ukraine is beginning to have negative effects on dozens of industries, including the automotive industry. In particular electric mobility, impacted by the scarcity of raw materials for the manufacture of key components such as batteries. You’re herebeing the largest manufacturer of electric cars, will be among the most affected, yes. But they will certainly not be the only ones..

The situation raises concerns about the short-term and long-term impact on the price of components for the manufacture of electric vehicles in general. Added to this are past supply chain issues caused by the COVID-19 pandemic and the semiconductor crisis.

The news that Tesla has again raised the price of its long-range models, i.e. larger capacity batteries, was the trigger to understand how electric car manufacturers are feeling the effects of the confrontation. Russian-Ukrainian. And while it is true that some of the challenges go beyond the context of war, it is also a reality that they have been amplified by events that are common knowledge.

So, in the last few days, what’s been happening with the nickel. We are talking about a fundamental metal for producing high energy density battery cells for electric cars, and Russia is a key player in this market. In recent days there has been strong pressure on its price, to the point that the London Metal Exchange stopped trading it when its price per ton exceeded 100 thousand dollars in Asia.

This sharp increase in its value was not only a response to Vladimir Putin’s decision to ban the export of raw materials, in return for sanctions imposed by other countries. The large number of short sales and bets against the asset also have a lot to do with it; Thus, when there is an unexpected increase in it, the traders they had to go out to buy more to cover their position, driving up their price even more.