Jaguar Land Rover Owner's Stock Soars on $1 Billion EV Deal

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Yahoo Finance 13 October, 2021 - 04:22am 2 views

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Auto stock Tata Motors (NYSE:TTM) jumped on Tuesday, trading up 13.4% as of 2:45 p.m. EDT. Earlier in the day, shares of India's automotive bellwether hit 52-week highs on India's National Stock Exchange on the back of two big announcements.

Tata Motors released surprisingly strong global wholesale numbers for its second quarter of fiscal 2022 on Oct. 11:

Jaguar Land Rover was a chink in Tata Motors' numbers, but the company had already warned of lower sales in the wake of the ongoing global semiconductor chip shortage that has hit automakers across the board.

Importantly, Tata Motors said orders for Jaguar Land Rover are at record levels, indicating strong demand. That's encouraging as JLR accounts for the bulk of the company's sales.

In another major development on Oct. 12, Tata Motors announced an agreement with TPG Group to raise nearly $1 billion to make headway into electric cars. The private equity firm will invest $1 billion in 2022 in an electric-vehicle subsidiary that Tata Motors will set up. The subsidiary will focus on battery electric vehicles, battery technology, and charging infrastructure, among other things, and aims to build a portfolio of 10 EVs in five years.

Electric cars are already changing the dynamics of the passenger vehicles space in the automotive sector, so it's imperative for Tata Motors to go with the tide. With the Indian government also aspiring for 30% of new vehicle sales in the nation to be electric by 2030, Tata Motors could see a lot of success ahead if it can build a strong EV growth road map for itself.

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Tata Motors raises close to $1 billion from TPG, ADQ for EV business

Yahoo Finance 13 October, 2021 - 09:13am

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NEW DELHI (Reuters) -Tata Motors will invest over $2 billion in its electric vehicle (EV) business over the next five years, a company executive said on Tuesday, after the Indian automaker announced it had raised funds from private equity firm TPG.

Earlier, Tata Motors said TPG's Rise Climate Fund and Abu Dhabi state holding company ADQ had agreed to invest about $1 billion to expand the company's EV business for which it would form a separate unit.

TPG and ADQ would hold between 11% and 15% in the new EV entity, valuing it at about $9.1 billion, Tata said. The unit will invest in new models, dedicated battery electric vehicle platforms, charging infrastructure and battery technologies.

"The aim is to lead the EV charge in the market," Shailesh Chandra, head of Tata Motors' passenger vehicles business told reporters, adding that to achieve its goals the company will work with investors who are focussed on a "carbon free world."

Shares in the Indian automaker, which owns British luxury brand Jaguar Land Rover, rose nearly 20% in Wednesday morning trade to its highest level since February 2017.

This is the first major fundraising by an Indian carmaker to push clean mobility when global automakers such as General Motors, Volkswagen and Toyota Motor are spending tens of billions of dollars to speed up EV adoption and also counter China's dominance of the sector.

It also comes as the world's biggest electric carmaker Tesla Inc is preparing to launch its cars in India and has been lobbying the government https://reut.rs/3hWd2Ok to lower import duties on EVs.

Investments in EVs globally by 2025 could total $330 billion, consulting firm AlixPartners said in June, adding that it expects EV sales to increase to about a quarter of total global vehicle sales by 2030 from about 2% today.

India intends for EVs to make up 30% of total car sales by 2030 from less than 1% at present. To achieve its target the government has launched several incentive schemes including one for setting up local battery manufacturing.

Tata Motors dominates EV sales in India with its electric SUV Nexon and Tigor compact EV, and plans to launch 10 new electric models by 2025. But several carmakers including Maruti Suzuki, India's largest, have yet to enter the space.

Tata also has the advantage of working with other group companies such as Tata Power, Tata Chemicals and Tata Autocomp to create an ecosystem for EVs, Chandra said.

JP Morgan and Morgan Stanley advised Tata Motors while Bank of America advised TPG.

(Reporting by Aditi Shah; editing by Jane Merriman and David Gregorio)

Tata Motors stock flew high on Tuesday after reporting solid numbers and a major move into electric cars.

Tata Motors Limited (NYSE: TTM) to raise about $1 billion in its passenger electric vehicle business via investments from TPG Rise Climate and co-investor ADQ. The investments will be made in a subsidiary of Tata Motors, which will be newly incorporated. The investors will invest in compulsory convertible instruments to secure an 11% - 15% stake in this company, translating to an equity valuation of up to $9.1 billion. Over the next five years, the newly incorporated company will create a portfo

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Shares of Tata Motors Ltd. (NYSE: TTM) traded at a new 52-week high today of $32.00. So far today approximately 4.1 million shares have been exchanged, as compared to an average 30-day volume of 1.7 million shares. In the past 52 weeks, shares of Tata Motors Ltd. have traded between a low of $8.57 and a high of $32.00 and are now at $31.69, which is 270% above that low price. Tata Motors Ltd. is currently priced 11.2% above its average consensus analyst price target of $28.14. Tata Motors owns i

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