Here's Two Potential Offshoots to Play Upside Following Tesla's (TSLA) Gigafactory Announcement

Want to leverage out the recent run in Tesla Motors (Nasdaq: TSLA) stock, but aren't share where to turn? What's your risk tolerance?

Tesla announced its Gigafactory plans on Wednesday night, sending shares higher overnight. With the stock up 66 percent in the last year, some might be getting a little nervous on continued growth acceleration. But, there might be two plays to consider to capitalize on more upside.

One is FMC Corp. (NYSE: FMC), which, along with other chemical offerings, has a lithium production segment. Shares ended Wednesday's session up 3.5 percent. With a market cap around $10 billion, this stock could see more upside, but it wouldn't be monumental at this point.

The riskier selection is Western Lithium USA Corp. (OTCBB: WLCDF). The company is developing its Kings Valley, Nevada lithium deposit into a strategic, scalable and reliable source of high quality lithium carbonate, among other things. Notably, the company issued a press release on Wednesday which read:

Western Lithium USA Corporation is responding to a request from the Investment Industry Regulatory Organization of Canada (IIROC) on behalf of the Toronto Stock Exchange (TSX) following recent trading activity. The Company is not aware of any circumstances that could reasonably be expected to justify the recent trading activity. The Company continues to pursue ongoing corporate development initiatives and funding opportunities, particularly in relation to the development of its Kings Valley Project. However, at this time none of these initiatives and opportunities have sufficiently advanced to a stage that would warrant public disclosure. The Company's policy is not to comment on rumors or speculation and accordingly, does not intend to comment further.

Some might already have been speculating about this one, with shares closing up 29 percent.

There should also be plays on nickel production, though we're not familiar with any U.S.-traded/based companies with some exposure in that segment. Most are Canadian or Australian miners/producers. Freeport (NYSE: FCX) and/or Cliffs Natural (NYSE: CLF) might be two to keep an eye on for production and exploration, but nickel wouldn't be a huge part of their business structure.

Tesla is indicated higher early Thursday.

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