Why is the market so enthusiastic about false news? Tesla's acquisition rumors have more than tripled the lithium mine stock.

On Wednesday, there were rumors in the U. S. stock market that Tesla was going to buy Nevada-based lithium mining company Lithium Corp.

At one point on Wednesday, the stock more than tripled to $1.09 in U. S. stock trading. By the close, the company's shares were up just 25 per cent, while Tesla was up 3.59 per cent.

However, according to the Lithium Corp. Press release, it did not receive an "intentional inquiry from Tesla". The company also said that no employees had left to join Tesla, which was false news.

However, Lithium Corp. May welcome the acquisition. "if Musk is interested, I'd be happy to talk to him."

The news first spread on Twitter, including loyal fans of Tesla, who shared a screenshot of the deal. The source of the picture appeared to be 5W Public Relations, a public relations firm, but the company also denied it.

A spokesman for the company said: "We do not know the source of the press release or why our contact information is listed. We did not issue this press release because we do not represent any other company. "

Competition for lithium

The reason why the market is so thoughtless about the news is that Mr Musk has long shown his interest in lithium mines.

Lithium is a kind of material for electric cars and trams. Lithium iron sulfate can be used as a cheap substitute for metal cobalt, and it is an important choice for Tesla and other electric car companies to face the high price of cobalt.

Tesla has his own joint venture battery production company and has signed a contract with lithium miners to guarantee the supply of battery raw materials, but for Musk, this is not enough.

On Friday, Musk suggested that Tesla should enter the lithium mining market, complaining that raw materials are too expensive.

The benchmark price of lithium ore has risen 80% so far this year, and the price of a basket of battery materials has risen by about 60% this year, adding an additional $2000 to the cost of each electric car, according to US media tracking.

In addition to Tesla, other car companies are also entering the battery raw material market.

On Monday, Ford announced that it would sign a guarantee agreement with lithium miner Lake Resources.

Lisa Drake, vice president of electric vehicles at Ford, said: "Ford is ploughing the battery supply chain, and this is just one of the many agreements that guarantee our electric vehicle acceleration program."

GM ordered the output of the Australian cobalt mine from Glencore. "GM and our suppliers are committed to building an ecosystem that allows the sustainable development of key raw materials," said Jeff Morrison, GM's vice president of global acquisition and supply chain.