- Sigma Lithium shares jumped Tuesday after Bloomberg reported that Tesla is considering a buyout.
- Shares of the Canadian mining firm surged as much as 20%.
Shares in Sigma Lithium sharply jumped Tuesday following a report that Tesla is thinking about buying the Canadian miner at a time of increasing demand for the key metal used in the manufacture of electric vehicle batteries.
Tesla has been discussing a possible bid for the company with potential advisers, Bloomberg News reported late Friday. Tesla, led by Elon Musk, is looking at multiple mining options as the company explores its own refining, an unnamed source with knowledge of the matter told Bloomberg.
Nasdaq-listed shares of Sigma Lithium gained as much as 21% in hitting an intraday high of $35.55. In Toronto trade, the stock soared as much as 20% to C$48 a share. The stocks reached their highest prices since early December and hovered around intraday highs during Tuesday afternoon trading
Deliberations are in an early stage and talks may not result in a deal, the report said. Neither Tesla representatives nor Elon Musk responded to Bloomberg requests for comments while Ana Cabral-Gardner, Sigma Lithium's CEO, declined to comment on "rumors."
Sigma Lithium shares have surged over the past year with prices for lithium rising as demand for the metal has overtaken supply. Sigma Lithium last year said it may nearly triple lithium production at one of its projects in Brazil in 2024.
Sigma Lithium's biggest shareholder, A10 Investimentos, a Brazilian private equity fund, has been gauging buyout interest from miners and carmakers, the report said. Cabral-Gardner helped establish A10 Investimentos.