Urja Global's stock zooms 20% after Tesla contract, but it isn't Elon Musk's Tesla

Small-cap Indian company Urja Global's stock price hit upper-circuit on Monday (June 12) after the company said it has signed a deal with Tesla Power India Private Limited. Many investors thought this was Elon Musk's car maker Tesla, and hurriedly bought the stock, sending it up by 20%, at Rs 12.70 per share.

What is Urja Global?

The company that started in 1992 is based in New Delhi, India. It engages in the design, consultancy, integration, supply, installation, commissioning, and maintenance of off-grid and grid-connected solar power plants and decentralized solar applications in India.

The company supplies automotive inverter batteries, solar inverters, LED street, flood, and panel lights, as well as LED bulbs and slim LED panel lights, PV modules, solar water heaters, solar lanterns, e-rickshaw and solar e-rickshaw.

The Tesla confusion

Tesla power India Private Limited offers one of the largest and complete range of modern maintenance-free two-wheeler, automotive, UPS and inverter batteries. Kavinder Khurana is the owner of Tesla Power India Private Limited and has no relation with the electric car manufacturer Tesla company which is owned by Elon Musk.

But the similar name just turned out to work in favour of the company as the moment Tesla Power India Private Limited signed their deal with Urja, many thought the deal was done with Musk's company.

The influence of brands

When a name becomes a brand, it has a huge influence on people. Just like luxury brands Dior, Chanel, Ferrari, Rolls-Royce and name any such brands, it will automatically make any one just go for it. The same happened with the name Tesla.

After the deal, Urja Global has made an agreement of manufacturing and supplying batteries under the name of Tesla Power brand.