Shares of Tata Motors were volatile in early trade on Thursday, a day after the Tata Group announced building a Gigafactory in the UK.
What Happened: The upcoming plant will possess a capacity of 40GWh and guarantee a local supply of batteries for another significant Tata venture, Jaguar Land Rover (JLR), along with other prominent manufacturers based in the UK and Europe.
See also: Chart: Best-Performing Tata Stocks So Far This Year
Reacting to the development, global research firm Morgan Stanley said that while developing batteries in-house may pose technological risks but shields the company’s supply chain from potential geopolitical risks.
The firm maintained its ‘overweight’ rating for the stock with a price target of ₹711 as it expects the Tata Group’s focus on EVs to help Tata Motors EV ramp up.
Price Action: Tata Motors’ share price was up 0.040% to trade at ₹620.85 shortly after the markets opened on Thursday.
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