Tata Motors Stock Crash: As soon as Tata Motors announced a discount on its vehicles and especially electric vehicles and other passenger cars, in the trading session of Wednesday, 11 September 2024, the stock of Tata Motors fell by more than 6 percent to the level of Rs 975. On top of that, the advice of foreign brokerage house UBS to sell the stock of Tata Motors has added fuel to the fire.
The stock may fall to Rs 825
In its research report, UBS has advised investors to sell Tata Motors stock. According to the brokerage house, the stock can fall to Rs 825, which is about 16 percent below the current level. On July 30, 2024, Tata Motors stock touched a high of Rs 1179, the stock has come down 17 percent from that level. By the way, Tata Motors stock has proved to be a multibagger for investors. In the last five years, the stock has given a return of 630 percent and in 2 years, 120 percent.
Why did UBS advise to sell?
According to UBS, the discount on Range Rover Sport is expected to increase in the coming days. According to UBS, JLR has seen a strong average selling price and improvement in margins in recent years due to the huge demand for its latest models. But the company’s order book has fallen below the pre-Covid period. China, which is one of the major markets for JLR, is expected to see a decline in demand due to economic slowdown.
Tata Motors discount offer
Due to the decrease in demand for passenger vehicles and falling sales, Tata Motors has announced huge discounts to see the upcoming festive season. The company is offering discounts up to Rs 2.05 lakh on its EVs, hatchbacks and SUVs. In August 2024, dealer sales have fallen by 4.5 percent, so dealers have a huge inventory. This is the reason why Tata Motors stock has been beaten on the stock exchange.
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