Lithium Americas (US:LAC) Zhi Tong Cai Jing·2025-10-17 01:36Core Viewpoint - The stock price of Lithium Americas Corp (LAC.US) plummeted by 21.72% following news of a potential investment by the U.S. government in the company and its Thacker Pass project, despite the stock having previously surged over threefold [1] Group 1: Stock Performance and Analyst Ratings - Morgan Stanley downgraded the stock rating from "Neutral" to "Underweight," setting a target price of $5, citing that the current valuation is significantly high [1] - The stock's surge was attributed to retail and momentum-driven buying, which has led to a disconnection from the company's fundamentals [1] Group 2: Project Potential and Strategic Position - Analyst Bill Peterson believes the Thacker Pass project has strong potential due to low-cost debt financing, a solid off-take agreement with General Motors (GM.US), and its strategic position as a representative of the Western lithium industry, especially with anticipated rising lithium prices in the coming years [1] - The U.S. government's investment in Lithium Americas is viewed more as a protective measure against potential losses rather than a strategic investment similar to the case of MP Materials (MP.US) [1] Group 3: Market Dynamics and Future Outlook - Peterson suggests that the visible incremental upside in the model is insufficient to support Lithium Americas' current valuation after considering revised loan terms and equity dilution factors [1] - There is a possibility of stock price correction if U.S.-China trade relations show signs of normalization in the short term [1]