Why Is Sigma Lithium (SGML) Up 20% Today?


  • Sigma Lithium (SGML) stock is rising alongside reports of a sale to Tesla (TSLA).
  • These reports claim the company’s largest shareholder is pushing for a sale.
  • This shareholder is allegedly approaching potential buyers like Tesla.
a lithium mine SGML stock.

Source: Shutterstock

Sigma Lithium (NASDAQ:SGML) stock is climbing higher on Tuesday following reports that Tesla (NASDAQ:TSLA) is considering buying the company.

According to these reports, Telsa wants to secure its own lithium mining company to reduce the costs of production for its electric vehicles (EVs). This has the company allegedly targeting Sigma Lithium as an acquisition to meet this goal.

The reports claim that A10 Investimentos is behind the push for Tesla to buy Sigma Lithium. A10 Investimentos is the largest shareholder of SGML stock and wants the company to consider a sale. A10 is even reportedly reaching out to potential buyers, including Tesla.

Finer details of a potential deal between the two companies are unknown. However, investors will keep in mind that Sigma Lithium was last valued at $3 billion when thinking about what Tesla might pay for the lithium mining company.

More TSLA Stock News

To go along with this news, Tesla also just signed a graphite deal with Magnis Energy (OTCMKTS:MNSEF). This has it securing a supply of graphite for EV battery production starting in February 2025.

SGML stock is seeing heavy trading today as some 2 million shares trade hands. For perspective, the company’s daily average trading volume is closer to 564,000 shares. SGML stock is also up 19.8% as of Tuesday morning

Investors looking for more of the latest stock market news on Tuesday will want to keep reading!

InvestorPlace is home to all of the latest stock market coverage traders need to know about on Tuesday. That includes what’s happening with shares of Nio (NYSE:NIO) stock, tech stocks and Alibaba (NYSE:BABA) stock today. You can catch up on all that news at the following links!

More Tuesday Stock Market News

On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/02/why-is-sigma-lithium-sgml-up-20-today/.

©2023 InvestorPlace Media, LLC