Tesla looking to buy Brazilian lithium developer?

Over the weekend we saw news coverage hinting at a potential bid from Tesla for Brazilian lithium developer, $4.4BN Sigma Lithium.

The news added almost a billion dollars to Sigma’s market cap, with its share price up ~21% in after-market trading in the US.

It's no surprise that today our lithium Investment Latin Resources (ASX: LRS) share prices gained ~13%.

LRS is looking to emulate the success of Sigma — its project sits only ~75km away from Sigma’s project.

Over the last 12 months, LRS first made its lithium discovery and then delivered its maiden JORC resource estimate of 13.3 Mt with lithium grades of 1.2%.

LRS’s maiden JORC resource estimate was eerily similar to Sigma’s first resource estimate back in 2018. Interestingly, back in 2018 Sigma’s market cap was also at a similar level to LRS’s now.

Less than five years later and Sigma’s resource is multiples the size of its existing JORC resource and it is only months away from production.

Since 2018, Sigma’s share price increased by over ~3,500%+ at its peak.

As for our Investment LRS, the company is now running a 65,000m drill program and expects to deliver a Definitive Feasibility Study (DFS) by the end of the year.

Given enough time (and a bit of luck), we are hoping LRS can emulate the success of its neighbour.

To see our deep dive into the similarities between Sigma and LRS check out our latest LRS note here: More on the Sigma Lithium playbook.