Recent news of Tesla's acquisition of Lithium Corporation, a lithium mining company, turned out to be fake. It remains unknown who created it, but some of the miner's investors are the ones who really could benefit from it, as Lithium Corporation's stock price rose more than 250% in the backdrop of this news.
News Channel Nebraska reported that rumors recently started circulating that Tesla had acquired a lithium mining company. According to their information, the rumors appeared after several Lithium Corporation employees were hired by Tesla. On April 13, a news channel reported that Tesla had confirmed the acquisition of Nevada-based lithium mining company, Lithium Corporation.
The good background for this information was that last week, Tesla CEO Elon Musk said the company “might actually have to get into the mining & refining directly at scale, unless costs improve.” This followed as a reaction to a tweet that quoted lithium prices. Over the past 10 years, the price has increased from $4,450 per ton in 2012 to $78,032 per ton in 2022.
Given the general information flow on the subject of Tesla and lithium, the news about the purchase of the Nevada-based miner by the Texas manufacturer seemed very plausible and very welcome. This was the reason that many Tesla enthusiasts shared it, as they saw it as a big positive.
However, the News Channel Nebraska news, based on the press release allegedly published by Lithium Corporation, turned out to be fake. Lithium issued an official statement confirming that the news is fake and that the company has no relation with Tesla:
“Lithium Corporation (OTCQB: LTUM) (“LTUM” or “the Company”), a North American company focused on energy metals for the growing energy storage sector and high-tech industries wishes to inform shareholders that, contrary to a press release issued by unknown parties on the 12th of April and rumors circulating on social media, we have not received so much as an expression of interest from Tesla, Inc. and no employees have left Lithium Corporation to take up employment with Tesla. We would be happy to chat with Elon if he was inclined, but presently there is no relationship between the two companies.”
At the moment, it remains unknown who created this fake news, however there are those who could benefit from it. On the back of the news, Lithium Corporation shares rose by more than 250%. This means that at least some of the company's shareholders could have made extra profits by selling shares at high prices.
© 2022, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.