Tata Motors shares plunged on Thursday morning, reflecting investor anxiety after news broke about the ongoing cyberattack that crippled its British subsidiary, Jaguar Land Rover (JLR).
Shares of Tata Motors on the National Stock Exchange opened at Rs 669.90 and quickly fell, closing at Rs 655.30 apiece—a sharp loss of over 3 per cent compared to yesterday.
What's driving the Tata Motors stock down?
The catalyst for this sudden selloff is the extended production shutdown at JLR’s key UK factories, which began after hackers infiltrated the company’s IT systems at the end of August. With production now on pause till at least October 1, Tata Motors faces mounting uncertainty over lost vehicle sales and delays to new launches.
But the biggest blow came from new reports suggesting JLR could be facing as much as a £2 billion financial hit from the cyberattack. This amount is even more than JLR’s total profit for last year, making the losses especially hard to stomach for Tata Motors shareholders.
Reports also suggest that the company may not have any insurance to shield itself from the fallout.
Tata Motors biggest loser in Nifty
Investors rushed to exit the stock today, making Tata Motors the biggest loser on the Nifty 50 index.
The stock saw heavy volumes and was noted to have underperformed the broader market. With JLR contributing about 70 per cent of Tata Motors’ revenues, the parent company’s fortunes are closely tied to its UK arm’s recovery.
Analysts warn that continued delays at JLR not only mean daily financial losses—estimated near £50 million per day—but also risk severe disruption in the supply chain, lost market share, and possible layoffs, which all feed into the bearish sentiment around Tata Motors.
What’s next for Tata Motors stock?
Tata Motors is now squarely in the market spotlight. If JLR can resume production as planned on October 1 and contain the damage, it may stem further declines in the stock.
But any more setbacks, especially confirmation of the huge uninsured losses, could push Tata Motors shares even lower.
For now, Tata Motors investors are bracing for more volatility, hoping for a swift resolution and recovery at JLR—but with every passing day of silence from the assembly lines, confidence remains shaken, and the stock reflects that uncertainty.
