Shares of Lithium Americas Corp. (LAC) plunged 9% in pre-market trading on Thursday, as investors reacted to a significant downgrade from JPMorgan. The Wall Street firm lowered its rating on the lithium producer from Neutral to Underweight, signaling a more pessimistic outlook on the company's prospects.

JPMorgan's downgrade was accompanied by a new price target of $5 for LAC shares, suggesting potential further downside from current levels. This move comes as a blow to Lithium Americas, which has been navigating a challenging market environment in the competitive lithium industry.

The substantial pre-market decline indicates that market participants are reassessing their expectations for LAC in light of JPMorgan's revised stance. As the electric vehicle industry continues to evolve, the demand dynamics for lithium producers remain a key focus for analysts and investors alike. This downgrade could raise concerns among investors about Lithium Americas' future performance and its position in the lithium market.