USA Rare Earth stock surged 8% Monday after a $1.3 billion loan from the Commerce Department and a $277 million equity stake purchase. However, concerns about government subsidies led to a complete loss of those gains. Today, the stock is up 5.8%, with Cantor Fitzgerald raising its price target to $35.

After receiving a $1.3 billion loan and $277 million equity stake, USA Rare Earth now has $3.5 billion in cash, reducing the risk of running out of funds before becoming profitable. Analysts believe magnet production could generate $1.2 billion in EBITDA by 2030 if milestones are met, according to TheFly.com.

Despite profits being four years away, analysts believe a cash burn of $285 million should get USA Rare Earth to profitability. With enough cash to reach profitability by 2030 even if off by a factor of 10, the company may not be a buy, but it won’t go bust.

The Motley Fool Stock Advisor team identified the 10 best stocks to buy now, and USA Rare Earth wasn’t one of them. The stocks selected have the potential to produce significant returns in the future, similar to the success stories of Netflix and Nvidia after being recommended by the team.

Read more at Yahoo Finance: Why USA Rare Earth Stock Bounced Back Today