Tata Motors skids over 5.5%, slips below ₹1,000 level; here is why 

Shares of Tata Motors declined nearly 6% to ₹972 apiece on the BSE on Wednesday, September 11, amid news reports that global brokerage firm UBS has assigned a 'sell' rating on the stock.

Besides, shares also dropped as the company announced price cuts of up to ₹2.05 lakh on its EVs and popular cars, signaling weak growth prospects.

The stock was the top loser on SENSEX and NIFTY. Further, as per reports, the stock is set for the longest losing streak in 16 years. With today's fall, the scrip has declined for the ninth straight day. In a month, shares have fallen over 9%. 

"With these special, limited period prices, we are breaking the high acquisition cost barrier for EVs and bringing EV prices closer to similar petrol and/or diesel-powered vehicles," Tata Passenger Electric Mobility chief commercial officer Vivek Srivatsa said.

The company's singular purpose is to mainstream EVs by breaking barriers and making EVs more accessible to regular car buyers, Srivatsa added.

Tata Motors has already announced a price cut ranging between ₹65,000 and ₹1.8 lakh on its internal combustion engine-powered range, which includes models like the Tiago, Nexon, Harrier, and Safari.

As per news reports, UBS said in its note, "JLR has performed well in recent years, with strong ASPs and margins driven by high demand for its latest models. However, the prolonged success of these models is beginning to moderate, and the company’s order book has fallen below pre-COVID levels," the note said.

Meanwhile, the Competition Commission of India (CCI) on Tuesday cleared the proposed merger of Tata Motors Finance into Tata Capital. Tata Capital is a subsidiary of Tata Sons and is operating as a non-banking financial company. TCL is engaged primarily in the business of lending, leasing, factoring, financing, and distributing financial products.