The Liontown Resources Ltd (ASX: LTR) share price has been up and down in May, but overall it fell slightly.
The lithium explorer's shares slipped 3% between market close on the last trading day of April and 31 May.
Let's take a look at what impacted Liontown shares in May.
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What has been happening to Liontown shares?
Liontown shares fell 21% between market close on 5 May and 12 May to a monthly low of $1.16.
The company's share price struggled earlier in the month due to broader market weakness in the lithium industry, my Foolish colleague James reported. ASX lithium shares Pilbara Minerals Ltd (ASX: PLS) and Allkem Ltd (ASX: AKE) fell 13% and 16% respectively in the same time frame.
On 12 May, the Liontown share price hit a monthly low of $1.16 before surging 22% to $1.42 by the end of the month.
ASX lithium shares, including Liontown, received a boost on 24 May when news emerged of a bidding frenzy in China. This sparked concerns that demand would outstrip supply and push up lithium prices.
On 25 May, Liontown analysts at Barrenjoey Markets rated the share as a buy. Analysts placed a $1.80 price target on Liontown shares, a massive 51% upside on the current share price.
Finally, to end the month, Liontown shares jumped on news of an extended offtake term sheet with Tesla Inc (NASDAQ: TSLA).
The termination date was extended to 6 June to enable the company to complete negotiations for a definitive agreement with Tesla. The deal would involve the supply of 150,000 dry metric tonnes of spodumene concentrate. This would be sourced from the company's Kathleen Valley lithium project in Western Australia.
Liontown price snapshot
Liontown shares have surged 135%% in the past 12 months, but have descended 28% in the year to date. Liontown shares fell 19% on 1 June alone, in what was a horror trading day for multiple ASX lithium shares.
For perspective, the S&P/ASX 200 Index (ASX: XJO) has shed nearly 1% in the past year.
Liontown has a market capitalisation of about $2.6 billion based on the current share price.
