Close menu

November 11th, 2020 | 14:15 CET

Tesla, Defense Metals, HelloFresh: Who makes a 468% return?

  • Rare Earth Elements
Photo credits:

When Tesla advertised its electric sports car around 10 years ago and let journalists drive the chic little vehicle around Germany, the Company was a highly speculative affair. The electric pioneers now have various vehicles on offer and are market leaders in their field. But that does not stop the share from making huge profits: The Tesla share climbed by almost 470% within the past twelve months.

time to read: 3 minutes | Author: Nico Popp
ISIN: CA2446331035 , US88160R1014 , DE000A161408

Table of contents:

    Tesla and China are tightening the rare earths market

    Another reason for success is the excellent flexibility of the Company. As soon as criticism is voiced or analysts warn of shrinking margins, the team around visionary and Tesla founder, Elon Musk, have an ace up their sleeve. To be competitive on the Chinese market, the engineers adapted the composition of the batteries and thus saved a few more dollars: shareholders and analysts like these tricks. Tesla will also have to be flexible in the future: The Company needs several critical metals for its batteries. These are still highly competitive in the global market. What's more, Tesla's customers have the claim that the raw materials used in the fancy electric cars have been extracted as sustainably as possible. Many projects from Africa or even China fall away with this claim. Producers from North America and Europe are moving into focus.

    But the market for critical metals is becoming increasingly tight. Most recently, the investment Company Fortress Value Acquisition Corp, reported the planned takeover of the North American rare earth producer, MP Materials. Next Friday, the shareholders of MP Materials are to decide on the acquisition. MP Materials' flagship project is considered the most critical rare earths producer in North America. At the same time, China has introduced a new law to ensure that economies that make the export of these critical metals difficult, can be sanctioned in the future. Smaller countries, in particular, could collapse under pressure from China.

    Defense Metals: Investors will know more by the end of March

    The small Canadian Company Defense Metals could benefit from this development. The Company is focused on rare earths and reports 4.9 million tonnes with an average content of 3.02% of light rare earth metals. Inferred resources include 12.1 million tonnes at a grade of 2.9% light rare earths. It was only late last month that Defense Metals raised new capital to justify the economics of its rare earths project through additional measures. The Company plans to report results by the end of March 2021.

    Given the low market capitalization of about EUR 6 million and the recent developments in the industry, the Company appears promising. Although small caps carry the risk of increased volatility, a revaluation is in the air, especially after proof of long-term profitability. Such developments can benefit speculative investors.

    HelloFresh: When crazy ideas become mainstream

    All early shareholders of HelloFresh must also be considered speculative investors. Just one year ago, the concept of food boxes by mail, which bring everything you need to cook at home, was deemed to be interesting, but at best an exciting niche. But then came Corona. The pandemic brought HelloFresh excellent business figures. Now it's time to defend the market shares we have gained. On a one-year horizon, the share price increased by 157%, but recently came down a bit. Even though the share still has a good portion of Corona fantasy slumbering in it, the potential seems to have been exhausted: The share is ambitiously valued, and growth appears limited.

    Defense Metals as tomorrow's winner?

    In a phase of change, investors should distinguish between short-term and existing trends. Climate change will continue to support interest in electric vehicles. Tesla has also built up a compelling brand image. Although the stock is already expensive, its value remains one of the most promising blue chips. In the small caps segment, investors can focus on suppliers, without whom Companies like Tesla cannot continue their success story. One such supplier could be Defense Metals, the Canadian rare earth Company. Rare earths are urgently needed not only in batteries but also in almost all electrical appliances and in Canada, these rare earths are sustainably mined too. When evaluating future opportunities, it is the prospects that matter.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.

    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author

    Related comments:

    Commented by Armin Schulz on June 21st, 2023 | 07:30 CEST

    Volkswagen, Defense Metals, Rheinmetall - Dependence on China

    • Rare Earth Elements
    • Electromobility
    • rheinmetall
    • volkswagen
    • defense

    Without rare earths, the energy transition fails. There would be neither electric cars nor wind turbines without the critical raw material, which has long been on the list of critical metals in Europe and the USA. But these applications are only the tip of the iceberg because this metal is also needed in the defense industry, smartphones, MRIs and many other high-tech devices. China processes the mined rare earths and has a near monopoly. Now that demand is increasing due to the energy transition and the BRICS countries are slowly breaking away from the US, alternatives should be sought. Today, we look at three companies that cannot do without rare earths.


    Commented by André Will-Laudien on June 15th, 2023 | 07:50 CEST

    New record prices every day, but where is the perfect battery? Varta, First Phosphate, Volkswagen in focus

    • Commodities
    • Technology
    • Rare Earth Elements
    • Battery Metals
    • E-Mobility

    Without the next evolutionary step in traction batteries, it will probably be a long time before e-mobility can replace the combustion engine market. Short service life, limited flexibility and high production and disposal costs stand in the way of an economic approach, even if the red-green government likes to downplay these facts. In the end, politics has also failed to provide electricity in an appropriately "sustainable" manner and at an affordable price. Therefore, anyone who wants to promote ecology through politics must ensure that electricity prices are halved, and all currently required fossil components are eliminated from the energy mix. Otherwise, the enlightened consumer may revert to purchasing fuel-efficient internal combustion engine vehicles, even if they eventually have to import them into the EU at some point. Where are the opportunities for dynamic investors?


    Commented by Juliane Zielonka on June 15th, 2023 | 07:25 CEST

    Nvidia, Defense Metals, Uniper - Valuable commodities for trillion-dollar digital market

    • Hydrogen
    • Rare Earth Elements
    • Energy
    • Digitization

    Digital transformation is critical for industrial companies worldwide to remain competitive and gain strategic advantage. In this context, Nvidia and Hexagon have partnered to provide companies with a comprehensive set of solutions for accelerating industrial digitalization. Defense Metals, on the other hand, secured the supply of essential rare earths for the global energy transition with a successful hydrometallurgical trial and feasibility study. The Wicheeda project in British Columbia strengthens the local energy supply and offers strategic advantages in defence, security and green technology. Uniper, an international energy company, relies on biomass instead of natural gas for energy production. With the construction of a syngas plant in the Netherlands, the Company aims to replace natural gas with sustainable gas in chemical production processes.