Urja Global has entered into an agreement with Tesla Power India Private Limited for the purpose of manufacturing and supply of batteries under the Tesla Power USA brand. However, Tesla Power USA has nothing to do with carmaker Tesla, which is owned by Elon Musk.
Shares of Urja Global Ltd were locked in upper circuit in trade on Monday after the company announced on Thursday (June 8) that it had signed a deal with Tesla Power. Investors went on a buying spree after they thought this was Elon Musk’s Tesla. In the last two trading sessions, the small-cap stock rose about 44 percent and it was up 63 percent in the last one month. However, the penny stock has given zero return to its shareholders in last one year as it has shed 0.40 percent during this time.
Urja Global has entered into an agreement on June 7, 2023 with Tesla Power India Private Limited for the purpose of manufacturing and supply of batteries under the Tesla Power USA brand.
Tesla Power USA has nothing to do with carmaker Tesla, which is owned by Elon Musk. It is a company that makes four wheeler car batteries, inverter batteries and two wheeler batteries and is based on Delaware, USA. It is present in India through its distribution channels and retail, according to the company website.
Reacting to the stock of Urja Global hitting upper circuit, ace investor Vijay Kedia wrote on Twitter: “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.”
The purpose of the agreement with Tesla Power India Private Limited is to manufacture and supply various types of batteries under the Tesla Power USA brand, Urja Global said. Urja Global will be the manufacturer and supplier partner of batteries in India.
“We are glad to inform that the Urja Global Limited (‘UGL’) has entered into Agreement on 07th June, 2023 with Tesla Power India Private Limited for the purpose of Manufacturing and Supply of batteries under the TESLA POWER USA brand,” the company said in a regulatory filing.
Further, the company said that it will utilise the “Tesla Service centers” for the promotion of their EV Battery Service requirements in respect to E-2 wheeler batteries.