Why Is Tesla Supplier's Stock Soaring Today?

Shares of Motherson Sumi Wiring India Ltd (MSWIL), which is one of the homegrown auto component manufacturers that supplies to Tesla, advanced nearly 4% in Friday’s session as investors reacted positively to the stock turning ex-bonus. The rally came on the back of July 18 being set as the record date for the company’s bonus share issue.

The stock opened higher at Rs 43.70 on the BSE, marking a 2.82% jump over its previous close of Rs 42.95. It continued to gain momentum through early trade, hitting an intraday high of Rs 44.80—up 5.41% from Thursday’s close. 

The rise came after two straight days of losses, even as the broader market struggled due to foreign fund outflows and a cautious start to the earnings season.

Despite today’s gains, the stock is still trading below its 52-week high of Rs 51.36, hit on July 29, 2024. It remains comfortably above its 52-week low of Rs 30.72, touched on February 28 this year. At current levels, the company’s market capitalization stands at approximately Rs 29,079 crore.

The bonus issue, announced in May 2025, is in a 1:2 ratio, meaning shareholders will receive one bonus share for every two shares held. The move, aimed at enhancing shareholder value and improving stock liquidity, was approved by the board subject to shareholder consent via postal ballot. The record date to determine eligible shareholders was set for July 18, 2025.

“The Board approved the issuance of bonus equity shares in the proportion of 1:2, fully paid-up, subject to shareholders’ approval through postal ballot,” the company had stated in an earlier regulatory communication to the exchanges.

Looking at its performance over various timeframes, MSWIL has posted a 15.55% gain over three years and an 11.94% rise over two years. However, on a one-year basis, the stock has retreated 11.83%. Since the beginning of 2025, the counter has appreciated by 11.23%.

For the quarter ended March 2025, the company reported a 13.85% year-on-year decline in net profit, which came in at Rs 164.93 crore, compared to Rs 191.44 crore during the same period last year. The earnings dip was attributed to increased operational costs, particularly a rise in input and raw material expenses.