Lithium Americas Corp. (LAC) stock is experiencing a pre-market plunge of 5.02% on Friday, following an extraordinary surge of 96% in the previous trading session. This volatility comes as investors react to recent news about potential U.S. government investment in the company.

On Wednesday, Lithium Americas saw its stock soar by 22.6%, marking its largest one-day percentage increase on record. The dramatic rise was fueled by reports that the U.S. government was in negotiations to take an equity stake in the Vancouver-based miner. This proposed investment is being considered as a way to renegotiate a $2.3 billion Energy Department loan granted during the Biden administration.

The pre-market decline on Friday suggests a possible correction or profit-taking by investors after the stock's significant gains. As the market digests the implications of potential government involvement and its impact on Lithium Americas' future, traders can expect continued volatility in the stock. Investors will be closely watching for any official announcements regarding the U.S. government's stake and how it might affect the company's operations and financial outlook in the critical lithium mining sector.