TTM - Why Tata Motors Stock Is Plunging Today
Yet another automaker stock has fallen prey to the global chip shortage. Shares of Tata Motors (NYSE: TTM) are tanking today and were down 11% as of 12:25 p.m. EDT. India's automotive bellwether was within an arm's reach of its 52-week high on India's National Stock Exchange (NSE) when an announcement from subsidiary Jaguar Land Rover (JLR) this morning sent the stock down 8.5% by NSE's close.
Ironically, Tata Motors just announced plans to hike prices of passenger cars for the second time in less than two months, but that isn't enough to offset the big hit JLR is about to take.
First things first: JLR brought in almost 78% of Tata Motors' total revenue in fiscal year 2021, so any adverse development at the British subsidiary is bound to hit the parent company hard.
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Why Tata Motors Stock Is Plunging Today