Is it too late to buy Pilbara Minerals Ltd shares?

One of the best performers on the market today has been the Pilbara Minerals Ltd (ASX: PLS) share price.

At the time of writing the lithium miner’s shares are up almost 6% to an all-time high of 94 cents. This brings its three-month return to a staggering 135%.

Why are its shares on fire?

Investors have been fighting to get hold of Pilbara Minerals’ shares thanks to the bullish global outlook on lithium carbonate prices.

With a number of governments across the world intent on banning the sale and manufacture of internal combustion engine vehicles in the not so distant future, electric vehicle adoption is expected to grow significantly.

And with lithium supply failing to keep up with demand already and all known future supply unlikely to change this in the next few years, miners like Pilbara Minerals look set to profit greatly from the high prices for the element for some time to come.

Another catalyst for its strong share price gain has been its off-take agreement with Great Wall Motor Company which comprises 75,000tpa of chemical grade spodumene concentrate over an initial five-year term.

The automaker paid A$28 million via an equity subscription and has the option to secure a further 75,000tpa of Stage 2 off-take by providing Pilbara with US$50 million of debt financing for its Stage 2 expansion

Is it too late to buy shares?

While I wouldn’t be a seller of its shares if I owed them, I wouldn’t necessarily be a buyer of its shares today.

Like fellow lithium miners Galaxy Resources Limited (ASX: GXY) and Orocobre Limited (ASX: ORE), I think Pilbara Minerals has rallied to what I would deem to be fair value.

In light of this, I would class it and its peers as holds and suggest investors wait for a pullback before making an investment. After which I think it would be a great buy and hold investment.

Finally, here's a tech share which I think will be a big winner from the electric vehicle boom as well.

Why Elon Musk’s “secret weapon” was the most shorted share in Australia...

On 9 March, the visionary Tesla co-founder and CEO made a bold $63,000,000 to save a large swath of Australia. But in the process, he accidentally revealed the small Melbourne-based company that allows him to consistently make the impossible possible. At one point, this little understood company was actually the single most heavily shorted share in all of the ASX. Yet oddly enough, nine out of 10 analysts call it a screaming BUY! And that includes Motley Fool Australia.

We just isolated this company as Elon Musk’s “secret weapon”, and think it’s dynamic run (up more than double after initially floating shares just two and a half years ago!) is only getting started. For the full story on this company, as well as how to get invested alongside us today, simply click here!

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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