A tweet quoting a 1960s Bollywood number had all of Motown buzzing about whether there’s some “kissa” brewing between Tata Motors and Tesla, which is entering India.
There was already chatter over the past few days with market participants suggesting that the rise in Tata Motors shares was also the result of talk of a deal with Tesla.
Adding spice to this speculation was a cheeky – though now deleted – tweet from the handle of Tata Motors Electric Mobility. “Aajkal tere mere pyaar ke charche har akhbaar mein, Sab ko malum hai aur sab ko khabar ho gayi! #WelcomeTesla #TeslaIndia (which translates to ‘The media is abuzz with our romance; it’s out in the public now’),” it tweeted a little after Friday noon.
As market players took notice, the Tata Motors Electric Mobility tweet was deleted. When contacted, a Tata Motors spokesperson said, “We have not taken any decision regarding a strategic partner for our PV business and categorically deny all rumours suggesting the same.”
Shares of Tata Motors have been shooting up over the Tesla speculation and also on the rapidly improving position of the company’s market share and sales.
In the last three months, the stock has more than doubled from its October 15, 2020 close at Rs.127. The stock has been rallying, according to market players, on expectations of a scrappage policy that will favour auto manufacturers and the closure of the Brexit deal, which is expected to favour its international operations. Besides, the rumours surrounding a venture with EV major Tesla Tata Motors, have been driving the stock up.
The company’s standalone sales performance has also been strong, propped by models such as Tiago mini, Nexon compact SUV, Altros hatch and Harrier SUV. It is also set to re-introduce the Safari SUV, and also a mini car with strong SUV styling.
And this is not all. Tata Motors has also bet heavily on the EV market and currently has two green products – the Tigor entry sedan and the Nexon EV. The company has set an ambitious tone in electrics, saying that it plans to price the green cars at “not more than 15-20% premium” to conventional petrol/diesel vehicles, while giving out a battery range at least in excess of 200km on a single charge.