LAC stock seems to be falling since the beginning of 2023, its YTD shows a decline of over 1.51%. On August 28, it opened trading at $17.24 lowering to $17.18, it hit a high of $17.65 and closed trading at $17.56 with an intraday trading volume of 871.605K. It is important to note that the trading volume was majorly dominated by the buyers.
LAC Stock Price Analysis
As per the market analyst, a possible bounce is expected in the August 29 trading session, in the 52-week time frame, LAC stock’s highest trading price was $32.50, and its lowest traded at $16.07. At the time of publishing, LAC stock was trading below its annual price target of $35.56.
Since last week, LAC’s stock price has shown a profitability of 5.85%. Despite this time frame, it lost 8.78% in a month and a depressing decline of 18.48% is seen in the monthly trading range.
There are expectations that LAC stock might soon beat its immediate resistance of $18.55 and following resistance of $19.18. Lithium Americas Corp. has a market capitalization of $2.808 Billion and its shares’ average trading volume is 1.576 Million.
Till the time of publishing, Lithium Americas Corp. surged over 9.89%. In 2023, it is the second time that the company’s market cap crossed a milestone of $2.60 Billion. It is important because its market cap was $3.47 Billion in 2021.
If sellers continued their dominance over buyers in the coming session then it is expected that LAC stock price might fall below $17 and register an upcoming support of $16.07 and following support of $15.72.
Financial Updates of Lithium Americas Corp
Lithium Americas Corp. reported zero revenue in the first quarter of 2023, the company was expected to report $91.90 Million in revenue. It is important to note that its revenue shrank 100% in the financial year 2022, as per the figures, the company was supposed to report $3.89 Million.
TradingView data states that 114.099 Million LAC shares are free-floating and the remaining 45.801 Million shares are closely held either by financial backers of the company or the board of directors.
For the third and fourth quarter of 2023, the company is expected to report $54.90 Million and 94.75 Million, respectively.
Is the Lithium Industry Down Behind LAC Stock Slipping Price?
According to a research report, the demand for Lithium is constantly increasing and in 2022, 82,000 Metric Tons of Lithium were mined for industrial usage. Dozens of data states that Lithium is among the most precious metals and it is available in a limited quantity.
As per Visualcaptilist’s report, three major factors responsible for the surging demand for Lithium are an increase in electric vehicle production, falling battery prices, and a rise in battery-producing megafactories.
Australia is the biggest Lithium producer in the world followed by Chile, China, Argentina, and the rest of the world. Numerous research reports state that China holds the first position in battery production.
By the mid of 2023, production of electric vehicles and green energy technology production have surged significantly and companies are rushing to secure their supply chain as demand for Lithium soars.
Conclusion
More than 98 Million metric tons of Lithium is available in the earth’s crust and the majority of it is held by Australia, China, and Argentina. LAC stock seems to be falling since the beginning of 2023, and in YTD it declined over 1.51%. After analyzing the technical aspects of LAC stock it is noted that a possible bounce in the trading price might be seen by the end of this week.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/08/29/lac-stock-slips-18-48-is-increasing-lithium-demand-responsible/