Tata Motors Stock Up After Announcement Of Investment In EV Business, Will It Sustain?

by Trefis Team
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Tata Motors
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Tata Motors’ stock (NYSE: TTM) rose by 63% in the last twenty-one trading days. In comparison, the broader S&P500 index declined by 0.3% over the same period. The stock rose after the company announced it will raise $1 billion in its passenger electric vehicle (EV) business from TPG Rise Climate. The company has entered into an agreement with TPG Rise Climate, a dedicated climate investing strategy of private investment firm TPG, under which TPG with its co-investor ADQ, will invest in a subsidiary of Tata Motors (which will be newly incorporated) to secure a stake between 11-15% in the new company. This translates to a valuation of up to $9.1 billion. Now, is TTM stock poised to grow? Based on our machine learning analysis of trends in the stock price over the last ten years, there is a very small chance of a rise in TTM stock over the next month (twenty-one trading days). See our analysis on Tata Motors’ Stock Chance Of Rise for more details.

Five Days: TTM 30%, vs. S&P500 1.8%; Overperformed market

(Very Low probability)

  • Tata Motors’ stock rose 30% over a five day trading period ending 10/15/2021, compared to the broader market (S&P500) which rose by 1.8%
  • A change of 30% or more over five trading days has a very low event probability, which has occurred 6 times out of 2516 in the last ten years

Ten Days: TTM 50%, vs. S&P500 2.7%; Overperformed market

(Very Low probability)

  • Tata Motors’ stock rose 50% over the last ten trading days (two weeks), compared to the broader market (S&P500) rise of 2.7%
  • A change of 50% or more over ten trading days has a very low event probability, which has occurred 4 times out of 2516 in the last ten years

Twenty-One Days: TTM 63%, vs. S&P500 -0.3%; Overperformed market

(Very Low probability)

  • Tata Motors’ stock rose 63% over the last twenty-one trading days (one month), compared to the broader market (S&P500) fall of 0.3%
  • A change of 63% or more over twenty-one trading days has a very low event probability, which has occurred 7 times out of 2516 in the last ten years

 

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