Why TMC The Metals Company Stock Sank 10% Last Month and Has Kept Falling in August

Core Viewpoint - TMC The Metals Company has experienced a significant stock price increase of 378% year to date, but recent trading has seen a pullback due to U.S.-China trade negotiations and profit-taking by investors [1][5]. Group 1: Stock Performance - TMC stock declined by 10% in July, contrasting with a 2.2% rise in the S&P 500 and a 3.7% increase in the Nasdaq Composite [1]. - The stock continued to slide in August, down approximately 10% as investors reduced exposure amid uncertain trade dynamics [5]. - Despite recent sell-offs, TMC's share price remains up roughly 378% year to date [5]. Group 2: Trade Negotiations and Market Dynamics - Developments in U.S.-China trade negotiations, including the lifting of export restrictions on high-end AI chips, have influenced TMC's stock performance [3]. - The Trump administration's concessions in technology exports aim to secure long-term access to China's rare earth mineral supply, which is strategically important for TMC [4]. - The recent pullback in TMC's stock follows a massive valuation run-up earlier in the year, reflecting investor sentiment regarding trade negotiations [2][4]. Group 3: Company Operations and Market Capitalization - TMC currently has a market capitalization of approximately $1.9 billion and remains in a pre-revenue state, needing key regulatory approvals to commence commercial seabed mining operations [6]. - An executive order from President Trump to expedite permitting reviews for seabed mining is seen as a positive development for TMC [7]. - Increased government support for domestic rare earth mining projects is expected to facilitate TMC's operational launch and scaling [6].