Urja Global shares hit upper circuit on signing deal with Tesla Power; rumoured link with Elon Musk’s Tesla Inc triggers spike

Urja Global Ltd shares hit a 20 per cent upper circuit in Monday’s session at Rs 12.74 per piece on BSE after the company informed the bourses last week that it entered into an agreement with Tesla Power India Private Ltd, a company not linked to US billionaire Elon Musk’s Tesla.

After Urja Global made this announcement on Thursday, investors started buying the stock in a spree, taking the stock uptick to nearly 44 percent in the past two trading sessions. The buying frenzy in this smallcap stock was triggered as many investors confused Tesla Power as an Elon Musk company.

However, it must be noted that the Tesla Power India Private Ltd is not the same as the electric vehicle giant Tesla Inc. led by the business magnate Elon Musk. Veteran market analyst Vijay Kedia also busted the myth in a tweet on Monday.

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. Stock is in upper circuit. Long live bull market.

— Vijay Kedia (@VijayKedia1) June 12, 2023

Urja Global signed a deal with Tesla Power India Private Ltd on Thursday, June 8, in order to manufacture and supply batteries under the company’s Tesla Power brand.

As per the agreement details, Urja Global will be the manufacturer and supplier partner of batteries in India. Urja Global Ltd will make use of the ‘Tesla Service centres’ to promote the requirements of their electric vehicle (EV) Battery Services with respect to the E-2 Wheeler Batteries.

Urja Global stock has gained significantly by surging 63 percent in the last one-month period. However, Urja Global’s stock has not given any meaningful returns to its shareholders in the past one-year period. The stock has, in fact, declined over 2.2 percent in the last one-year period.

Urja Global’s share prices have jumped 57.48 percent in the last week.

For the quarter ended March 2023, Urja Global reported a net profit of Rs 0.09 crore, declining by 57.59 percent from Rs 0.22 crore in the same quarter last year, and its net sales reduced by 73.94 percent to Rs 10.64 crore compared to Rs 40.82 crore in the year-ago period.