The stock price of small-cap company Urja Global experienced a significant boost as it hit the upper circuit following the company’s announcement of a partnership with Tesla Power USA.
This development led many investors to believe that the renowned electric vehicle (EV) manufacturer, Tesla, owned by Elon Musk, was involved. Consequently, eager investors hastily purchased Urja Global’s stock, driving its value up by 20% to Rs 12.70 per share.
However, it is important to note that Tesla Power USA is an independent entity unrelated to Elon Musk’s Tesla car company. Headquartered in Delaware, USA, Tesla Power USA specializes in the production of four-wheeler car batteries, inverter batteries, and two-wheeler batteries.
While it maintains a presence in India through distribution channels and retail outlets, it is not associated with Elon Musk’s Tesla as commonly perceived by some investors.
Renowned investor Vijay Kedia took to Twitter to share his excitement about the news of an Indian-listed company collaborating with Tesla USA. However, upon conducting further research, he discovered that the partnership was not with Elon Musk’s Tesla, but rather with a subsidiary of a Delhi-based promoter’s company named Tesla. Despite this clarification, Urja Global’s stock remained locked in the upper circuit, indicating a positive sentiment within the bullish market.
Urja Global promptly notified the Indian stock market exchanges about the partnership with Tesla Power India Private Limited. The agreement, signed on June 7, 2023, aims to facilitate the manufacturing and supply of batteries under the TESLA POWER USA brand by Urja Global Limited (“UGL”). This collaboration signifies an important milestone for Urja Global as it ventures into the battery manufacturing segment in association with Tesla Power USA.