LAC Stock Doubles as Trump Seeks Stake in Lithium Americas. Options Data Tells Us It Could Be Headed Here Next.

Core Viewpoint - Lithium Americas (LAC) shares have surged over 12% following reports of President Donald Trump seeking an equity stake in the company, which is currently renegotiating a $2.2 billion loan for its Thacker Pass mine [1][2]. Group 1: Stock Performance and Market Reaction - LAC stock closed up 95.8% on Wednesday and has increased nearly 200% from its year-to-date low [1][2]. - The potential federal equity stake is seen as a strategic endorsement of LAC's role in securing domestic lithium supply, which is critical for the electric vehicle (EV) battery supply chain [3][5]. Group 2: Federal Support and Implications - A small equity stake in exchange for extending loan repayment could reduce taxpayer risk, according to a U.S. official [2]. - A deal with the Trump administration could derisk the Thacker Pass project, attract institutional capital, and expedite regulatory approvals, reflecting bipartisan urgency to counter China's dominance in critical minerals [4]. Group 3: Future Projections and Options Data - Options data suggests significant upside potential for LAC shares, with an implied trading range of $3.99 to $9.74 for January 2025 expiration [6]. - The expected price movement through October 17 is 33.58%, with an upper price target of $9.10, indicating potential volatility but a favorable outlook if federal support materializes [6][7]. Group 4: Analyst Sentiment - Wall Street analysts currently maintain a positive stance on Lithium Americas stock, indicating confidence in its future performance [9].