Tata Motors shares leap another 11%; here’s why

Tata Motors shares leap another 11%; here's why

NEW DELHI: Tata Motors shares surged further 11 per cent on Tuesday amid buzz over partnership with Tesla and encouraging sales numbers from Jaguar Land Rover (JLR) for the third quarter.

Shares of the company were trading at Rs 244.10, up 10.90 per cent on BSE. On NSE, it gained 10.51 per cent. On Monday, shares had climbed 13 per cent.

Tata Motors, in a release, said JLR’s retail sales for the quarter ending December 2020 were 128,469 vehicles, 13.1 per higher than the 113,569 vehicles sold in the preceding quarter, but down 9 per cent on the same period last year.

“China sales were particularly encouraging, up 20.2 per cent on the prior quarter and 19.1 per cent year-on-year. Retail sales in most other regions also continued to recover and were up significantly on the prior quarter in North America (+31.7 per cent), Overseas (+26.6 per cent) and Europe (+20.5 per cent),” said the company.

This followed a 21 per cent year-on-year growth in domestic sales in December for Tata Motors.

Earlier, a market rumour that Tesla was planning to sign an MoU and partner with Tata Motors to manufacture and sell its vehicles in India using the Tata facilities gave a boost to the stock price, as investors lapped up shares.

The rumour also said Tesla had already conducted a due diligence and found Tata has the best EV infra among all auto majors. However, in a statement to a business news channel, Tata Motors denied any talks of collaboration with Tesla.

It said the company has not taken any decision regarding a strategic partner for its PV business and categorically denies any and all rumours suggesting the same.

On Tuesday, BSE also asked for clarification on the rumour. An official reply on the same is awaited.

Tesla has been trying to enter India for a couple of years now. Union Minister for Road Transport and Highways Nitin Gadkari had last month confirmed that the company is set to commence its India operations in 2021.

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