Lithium Americas Corp soars on California’s push toward electric vehicles

  • NYSE:LAC has stabilized around $15 after last week’s late surge. 
  • Lithium Americas Corp is benefiting from California’s drive toward electric cars. 
  • The firm’s sky-high predictions also boost the stock price.

California paves the way forward – whether for privacy regulations or for vehicles. The Golden State, which is the home of Silicon Valley, announced a ban on vehicles running on combustible engines by 2035. The goal is to push forward the usage of electric cars, which do not directly pollute the air.

EVs run on batteries, and the most significant component is lithium – and that is where Lithium Americas Corp comes into play. California Governor Gavin Newsom announced the ban on September 23, and that marks the low point for NYSE: LAC shares. 

Since then, it has been on the rise, accelerating its gains in recent days. 

Another positive factor boosting the firm is its own rosy predictions. Lithium Americas said that the entire world’s cars will be electric, running on lithium batteries. It also warned that supplies of the metal are only half of what had been earlier thought. 

While a lithium company cannot do anything but “talk its book” – the move from California and EV companies moves towards that direction is encouraging news support NYSE: LAC. 

LAC stock forecast

LAC stock price chart

Shares broke the 52-week high of $15.30 on Monday, rising to $15.86. Since then, the price has meandered around the $15 mark, closing just below that level on Thursday. NYSE: LAC had closed at only $7.03 – half of Friday’s closing price – on September 23. 

Is the sky the limit? The next round number to watch is $20, a price that would prompt more attention from investors. However, a downside correction cannot be ruled out. It is essential to remember that the 52-week low is $1.92, meaning that Lithium America’s Corp is more than seven times more expensive. Support awaits at around $10.50, which is last Monday’s low. 

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