Big Supply Deal With U.S. EV Firm Sends Auto Stock Surging 5%—Could It Be Tesla?

Ramkrishna Forgings announced it has secured a contract to supply powertrain components to the largest passenger electric vehicle (EV) maker in the United States. While the company did not take explicitly state a name, Tesla is the top EV producer in the US

What Happened: The deal marks the Kolkata-based company's first foray into the U.S. EV market, described in a regulatory filing as a "significant milestone" and the start of a strategic partnership that promises many exciting opportunities.

The company, which manufactures and supplies forged, machined, and fabricated products anticipates that the EV segment will contribute 6% to its consolidated revenue by the end of this fiscal year and plans further diversification within the EV sector through inorganic growth.

Milesh Gandhi, the executive director of Ramkrishna Forgings, expressed enthusiasm about this approval, stating that it affirms the company's capability to meet the evolving demands of the EV industry.

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He emphasised that leveraging their four decades of experience in forging components allows them to help customers reduce development time and accelerate market entry, thereby supporting the progress of sustainable mobility worldwide.

Meanwhile, media reports suggest that Tesla could announce a $2 billion-$3 billion (₹16,703 crore-₹25,055 crore) investment plan for setting up a new factory in India when CEO Elon Musk visits New Delhi in the coming week to meet Prime Minister Narendra Modi.

Ramkrishna Forgings operates facilities in Jamshedpur, Jharkhand, Dugni at Saraikela, and Liluah, West Bengal, among others, and supplies to various industries including automotive, railways, and more, with clients like Tata Motors, Ashok Leyland, Volvo, and Ford.

Following the news, shares of Ramkrishna Forgings surged by as much as 5% to an intraday high of ₹764.80 on the National Stock Exchange (NSE), pushing the company's market capitalization over ₹13,500 crore.

Price Action: Ramkrishna Forgings Ltd. shares were trading 4.42% at ₹756.45 on Thursday afternoon.

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