The Lynas Rare Earths Ltd (ASX: LYC) share price has reset its 52-week low five times this month.
Talk about being dragged along the bottom, right?
The Lynas share price has been on a downward spiral since the first week of February.
It’s been a rough time for shareholders — but also a buy-the-dip opportunity for true believers.
The ASX rare earths stock tumbled to $6.25 per share yesterday. Lynas is currently trading for $6.53 per share, up 1.48% on Friday so far.
Since the close on 1 February, the Lynas share price has fallen by 33%.
Let’s take a look at what’s going on.
What’s putting a dampener on the Lynas share price?
Well, the hits have just kept on coming for this ASX rare earths stock.
In early February, the company’s Malaysian licence was renewed but not with the conditions it wanted. So, Lynas has begun an appeal process which is still ongoing today.
Then on 27 February, the company reported its 1H FY23 results, revealing a 32% cost increase.
A few days later, electric vehicle (EV) giant Telsa Inc (NASDAQ: TSLA) announced its next-generation EVs will use a permanent magnet motor without rare earths components.
Typically, EVs use a magnet with a rare earths alloy mix of neodymium, iron, and boron (NdFeB).
This prompted a sell-off on ASX rare earths stocks. The Lynas share price dropped by 6.8% on the news.
Many experts said this was an overreaction.
Among them were specialist critical minerals research and advisory firm Adamas Intelligence.
Adamas said its research showed Tesla only accounts for 2% to 3% of global NdFeB demand.
