Tata Motors’ share price jumped back in the green on Thursday as the company announced massive investment plans for its subsidiary Jaguar Land Rover.
What Happened: The automobile giant on Wednesday announced that JLR will be investing $15 billion over the next five years to expand its capabilities in the EV space. In a press release, JLR elaborated that the massive investment will go towards its “industrial footprint, vehicle programmes, autonomous, AI and digital technologies, and people skills.”
JLR's Halewood plant in Merseyside, UK, will become an all-electric manufacturing facility. Its engine manufacturing centre in Wolverhampton, UK, is to be renamed Electric Propulsion Manufacturing Centre. The company also plans to open its pre-order book for electric Range Rovers later this year.
Commenting on the massive push towards EVs JLR CEO Adrian Mardell said that the investments are a
reaffirmation of the company’s commitment to be carbon net zero by 2039.
The announcement has also impressed global analysts. Macquarie maintained its ‘outperform’ rating on the stock with a target price of ₹511. Bank of America also reaffirmed its ‘buy’ rating for the stock with a price target of ₹475. Morgan Stanley also remained ‘overweight’ on the stock with a target price of ₹513. The firms see the EV push as an absolute positive for the company going forward.
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Price Action: Tata Motors’ share price was up 0.73% to trade at ₹472.35 in the early hours of trading on Thursday.
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