The share prices of Suprajit Engineering, SKF India, Sandhar Technologies, and Sona Blw Precision Forgings experienced significant increases today, attributed to the anticipation of Tesla CEO Elon Musk visit to India. Musk’s upcoming meeting with Prime Minister Narendra Modi aims to advance discussions on establishing a Tesla car manufacturing presence in the country.
Tesla plans to diversify its manufacturing operations beyond China
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Tesla heavily relies on China for nearly half of its global production. Similarly, Apple, another American company that previously depended on manufacturing in China, has made significant strides in entering the Indian market.
Investors are once again responding to the news of Elon Musk visiting to India, as many auto ancillary companies have connections with Tesla. This visit is expected to mark a significant advancement in the process of establishing Tesla’s presence in the country.
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As context, this visit follows the unveiling of India’s electric vehicle policy, which offers incentives to foreign automakers interested in setting up manufacturing plants in the country. However, these companies must first pledge to make local investments.
How Indian ancillary companies responded to Elon Musk
Today, Suprajit Engineering’s share price increased by 2 percent. Its connection with Tesla originates from its acquisition of the Light Duty Cable (LDC) business unit from the Norwegian company Kongsberg Automotive. Suprajit Engineering supplies various components to Tesla.
Today, Sandhar Technologies’ share price surged by more than 4 percent, reaching ₹519.70. The company supplies components for various Tesla models, including the wiper system for the Tesla Model 3.
Sona Blw Precision Forgings saw its share price increase by over 4 percent to ₹679.70. Earlier, it experienced a rise of over 7 percent, reaching above the ₹705 mark. The company provides components and systems for Tesla and other clients.