TMC The Metals Company Stock Crashes: Here’s Why Investors Are Fleeing

Another day, another mining stock getting hammered—welcome to the commodities casino.

Seafloor dreams, shareholder screams

TMC's underwater mining ambitions aren't floating investor boats today. The stock's nosedive comes as regulators globally tighten screws on deep-sea resource extraction.

Short sellers smell blood

Hedge funds are circling like sharks after Q2 production delays sparked liquidity concerns. Because nothing says 'sustainable mining' like burning through cash faster than a Bitcoin miner in 2021.

Brass tacks

The metals play got too cute with its timeline. Now retail bagholders are left staring at -40% YTD charts while Wall Street shrugs and moves to the next speculative bet.

Image source: Getty Images.

TMC stock sinks as Trump makes trade concession

In order to help advance trade talks, the TRUMP administration has lifted export licensing requirements that effectively prevented advanced semiconductors and semiconductor manufacturing equipment from being sold to China. The White House had previously said that an earlier move to allow's H20 processor to be sold into the Chinese market was made with hopes of securing continued access to its geopolitical rival's rare earth minerals.

TMC stock has seen massive gains this year as investors have bet that the company's seabed mining capabilities could become an important part of the U.S.'s push to improve its ability to source minerals domestically and through collaborations with allies.

What's next for TMC?

If mineral access winds up being a central component in a trade deal between the U.S. and China, TMC stock could face some strong valuation pressures. The company is still going through the application process needed to receive regulatory approvals to begin its seabed mining operations, and there's a chance that a shift in political dynamics will remove conditions that could have aided TMC in the process.

On the other hand, it's likely that the U.S. will continue to make domestic mineral sourcing a priority, even if a trade deal with China is reached. TMC's outlook remains highly speculative, and the stock is a risky play after rising more than 500% this year. However, the recent tech export news hardly suggests that its growth prospects have been torpedoed.