Lordstown Motors stock sank 10% after analysts downgrade

Lordstown Motors (RIDE.US) shares plunged more than 10.0% during today’s session after Morgan Stanley (MS.US) downgraded its investment stance to ‘underweight’ from ‘equal weight’ and reduced its price target to just $2 from $8. The bank noted that the recently announced sale of Lordstown’s Ohio plant to Foxconn values the plant at less than a fifth of prior estimates.

Lordstown Motors (RIDE.US) stock fell from local high at $8.90 on Friday and the downward move has been extended this week. Stock launched today’s session with a bearish price gap, below major support at $5.80 which now acts as resistance. Should current sentiment prevail, then downward move may accelerate towards all-time low at $4.80. Source: xStation5