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  5. Tesla partnership reports send stocks of these three companies rallying up to 11%

Tesla partnership reports send stocks of these three companies rallying up to 11%

Tesla partnership reports send stocks of these three companies rallying up to 11%
Business2 min read
  • Tesla’s India launch is drawing closer and this should make fans of the company as well investors in the Indian auto sector happy.
  • Reports of Tesla’s India launch have sent shares of three auto component suppliers rallying up to 11%.
  • Media reports suggested that these companies are already supplying components to Tesla.
India may be nearing the long-awaited launch of Tesla, and shareholders of these three Indian companies could be in for a bonanza.

According to a report by The Economic Times, Tesla is in talks with three Indian auto component supplies – Sona Comstar, Sandhar Technologies and Bharat Forge. The report cites sources familiar with the matter, and claims that these three companies are already supplying components to Tesla.

Reacting to the report, stocks of the three companies surged by as much as 11% as of 11:00 a.m., on August 30.

Company

Day's change

Sandhar Technologies

11.54%

Sona Comstar

6.08%

Bharat Forge

3.72%


Tesla is known to make some of the core components of its cars on its own. This includes the battery pack, charger and the electric motor – the three primary parts in its cars. However, it sources other parts like sub-assemblies, instrument panels, windshields among other things, from third-party suppliers.

Earlier in July, Tesla’s chief executive officer Elon Musk had said that the company is willing to set up a factory in India if the response to its electric cars is good.


Tesla is reportedly testing the Model 3 in India – the company’s entry-level car has been spotted in camouflage in Maharashtra. Tesla has also registered its India unit under the name of Tesla India Motors, in Karnataka, according to filing with the Registrar of Companies (RoC).

This would suggest that the answer to the question about Tesla’s India launch is more “when” and not “if”. When it finally launches in India, Tesla’s competitors will include Tata Motors, which has two electric cars, the Nexon EV and the Tigor EV, and Mahindra & Mahindra, which has the eVerito and e2o Plus. MG, Audi, Jaguar, Hyundai, Mercedes-Benz have one electric car each, too.

SEE ALSO:

Tata Motors is paying the price because Jaguar Land Rover has been slow in the EV race

Odisha government will promote electric vehicle manufacturing under its latest policy

Tata Motors launches Tigor EV — All you need to know about the compact electric sedan

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