Image Source:
A divergence is happening in the automobile sector. while traditional Internal Combustion Engine (ICE) vehicles like Toyota and Tata Motors are soaring. Companies like Ford and General Motors have also bounced back from their lowest levels in 2023.
Tata Motors earnings
Tata Motors has emerged as one of the best-performing automotive stocks in the past few years. Its stock has jumped by more than 1,300% from its lowest point in 2020, making it a better performer than the likes of Tesla, Lucid Motors, and Rivian.This performance has been driven by the strong demand of its vehicles around the world. This view was confirmed on Friday when it published stronger-than-expected financial results. Its Jaguar Land Rover’s (JLR) pretax by 73% to £627 million as its revenue rose by 23% to £7.4 billion. For the group, Tata Motors profit spiked by 137.5% to ₹7.025 crore while revenue soared to ₹110.5 crore. The management believes that its business will continue thriving this year, helped by the rising demand for SUVs in India. The company has used its rally to reduce its total debt as it continues with its deleveraging plan.Like other automakers, Tata Motors is also investing in electric vehicles. In October, the company said that it will invest 4 billion pounds in a UK gigafactory. Its goal is to have a significant market share in the EV industry.However, its EV business is relatively small compared to its main ICE business. Recent results show that demand for EVs has slowed substantially in the past few months. In the US, companies like GM and Ford have plans to scale down their EV investments as demand wanes.This is also being reflected in the stock prices of EV companies. Tesla has plunged by more than 50% from its highest point on record. Other EV companies like Rivian, Nio, and VinFast have also plunged.
Tata Motors share price forecast
(Click on image to enlarge)
Tata Motors, like most , has been in a strong bull run after bottoming in 2020. It has constantly made higher highs and higher lows as demand for the stock remained. The stock has also moved comfortably above all moving averages and the resistance point at ₹850. Therefore, the outlook for the stock is still bullish, with the next price to watch being the psychologically important point at ₹1,000.More By This Author:
Tata Motors Share Price Spikes To Record As EV Stocks Plunge
