Urja Global has entered into a partnership with Tesla Power USA to produce and provide batteries under the Tesla Power brand in India, leading to a significant rise in the stock of this small-cap company. Investors mistakenly believed that this was associated with Elon Musk’s Tesla, but that is not the case.
Today Stock Market: The stock price of small-cap company Urja Global soared to its upper circuit limit after the company announced that it has entered into a partnership with Tesla Power USA.
Numerous investors mistakenly believed that this was the electric vehicle (EV) manufacturer Tesla, owned by Elon Musk, and quickly purchased the stock, causing it to surge by 20% to ₹12.70 per share.
Tesla Power USA, which is not affiliated with Elon Musk’s car manufacturing company Tesla, specializes in the production of batteries for four-wheelers, inverter batteries, and two-wheeler batteries. The company is headquartered in Delaware, USA, and has established a presence in India through its distribution channels and retail operations, as mentioned on its website.
Urja Global Deal with Tesla
In response to the surge in Urja Global shares, renowned investor Vijay Kedia tweeted, ““I am thrilled to read a news about a listed Indian company “tied up” with Tesla USA. I did some homework and found It’s not Elon musk’s tesla, it actually belongs to a Delhi based promoter’s USA subsidiary in the name of Tesla. The stock is locked in the upper circuit
Urja Global informed the Indian Stock Market Exchange that “We hereby inform you that Urja Global Limited (“UGL”) has entered into an agreement with Tesla Power India Private Limited effective June 07, 2023, with the objective of To manufacture and supply batteries under the TESLA POWER USA brand.”
Looking at the company’s overall performance
Urja Global Limited’s share price skyrocketed by 20% due to a recent deal with Tesla Power India Private Limited. The company’s shares reached a price of Rs 10.60, thanks to this contract signed on 7th June. Urja Global Limited will now produce and supply batteries under the Tesla Power USA brand, which has boosted investor confidence. As a result, the demand for shares surged, with over 28,06,769 shares being purchased today and no shares available for sale.
the share price of Urja Global was Rs 13.25 a year ago, but it has now dropped to Rs 10.60. This means that investors who bought shares a year ago are currently facing a 20% loss. However, there is some relief for long-term investors, as the share price has increased by more than 35% in the past month.
Urja Global share news: In the past two consecutive sessions, the shares of Urja Global have been consistently reaching the 20% upper circuit, resulting in a significant gain of approximately 55% for this small-cap stock in the last week. Moreover, over the course of the past month, the price of this penny stock has risen from ₹7.80 to ₹12.70 per share, delivering an impressive return of 60% to its shareholders during this period.
On the other hand, the small-cap stock has not provided any returns to its shareholders in the past year, as it has experienced a decline of nearly 0.50% during this period.
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