The Lordstown Motors share price has declined heavily following the downgrade of the stock by investment bank Morgan Stanley. Morgan Stanley downgraded the company’s rating from equal weight to underweight and cut its price target for the stock from $8 to $2. The company recently entered into a $280 million deal with Foxconn to jointly push the development of electric vehicles over the next two years.
Despite Morgan Stanley’s pessimism regarding this deal’s value for shareholders, CEO Dan Ninivaggi is confident that the agreement will lead to a strong push in the company’s growth.
The Lordstown Motors share price is currently trading lower by 2.19%, marking a fifth consecutive day of losses. The stock is well on its way to testing the all-time lows. However, the price target for Morgan Stanley means that the bears still have some room to push prices south if the current sentiment persists.
Lordstown Motors Share Price
If the price breaks below the 4.68 support level (all-time low), then we could see the attainment of sequential targets at the 2.90 and 2.10 price marks (100% Fibonacci extension), with the latter coming in just above Morgan Stanley’s target.
On the flip side, a bounce on the 4.68 support targets 6.85. 8.00 and 9.14 are ambitious targets to the north. The prevailing sentiment makes for potential rally-sell opportunities from any of the mentioned resistance barriers.