International Battery Metals Ltd (IBATF)

[TradingCharts]

Simbol had commissioned a valuation by Jefferies, a New York-based global investment bank, which estimated the startup to be worth $2.5 billion. A copy of that valuation was obtained by The Desert Sun, and verified by the person with knowledge of the negotiations.

Joe Lowry, a veteran lithium consultant, was Simbol's vice president of sales and marketing during negotiations with Tesla. He said Simbol's board of directors hoped to strike a deal with Tesla for $1.6 billion.

"I told them it was a ridiculous number," Lowry said.

The person with knowledge of the negotiations told a slightly different story, saying Musk shut down all discussions after seeing the $2.5 billion valuation from Jefferies. According to that source, Musk abruptly ended all negotiations after reviewing the valuation, never giving Simbol the chance to present a counteroffer to his proposed $325 million purchase price.