Lithium Americas (LAC) Stock Is Sliding Monday: What's Going On?

Shares of Lithium Americas Corp (NYSE: LAC) are falling sharply Monday afternoon, giving back a portion of last week's gains. The stock is pulling back as investors take profits on the recent surge, which was fueled by news of a potential U.S. government investment.

What To Know: Last week, the stock soared following reports that the government is considering a renegotiated $2.26 billion loan from the Department of Energy, which could include taking a significant equity stake in the company. This funding is aimed at developing the Thacker Pass mine in Nevada, a project in which General Motors holds a 38% stake.

While Lithium Americas confirmed it is in discussions with the government, it has stated that no definitive agreement has been reached. The current downturn appears to be driven by profit-taking after the speculative rally. The Thacker Pass project is anticipated to become one of North America’s largest lithium sources.

Benzinga Edge Rankings: Highlighting the stock’s recent, powerful price action, Benzinga Edge rankings give LAC a very high Momentum score of 95.71.

LAC Price Action: Lithium Americas shares were down 11.45% at $5.60 at the time of publication Monday, according to Benzinga Pro. The stock is trading within its 52-week range of $2.31 to $7.53.

The stock’s current price of $5.60 is well above the 50-day moving average of $3.13, indicating a strong bullish trend prior to this decline. Immediate support can be observed around the recent low of $5.58, while resistance is likely at the previous high of $6.38.

Read Also: Lithium Regains Buzz Despite Lukewarm Short-Term Prospects

How To Buy LAC Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Lithium Americas’ case, it is in the Materials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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