Lithium Americas: Short-Seller Report Alleges Lithium Project Is Uneconomical

On May 23, a short-seller released a report asserting that Lithium Americas' Thacker Pass project is uneconomic and shares are likely to be further diluted. After reviewing the report, we see no reason to change our $12 (CAD 16) fair value estimate for no-moat Lithium Americas. The stock plunged over 6% on the day as the market reacted negatively to the report. At current prices, we view shares as materially undervalued, with the stock trading well below our fair value estimates.