Jaguar LandRover - comment

With Q3 results due on 25th January, there is an increasing number of press articles cropping up. The main theme of the articles refers to the high-order book but relatively low level of sales due to the semiconductors supply issues. All of these are old news to anyone following the Company. The articles point to the longer-term issues which we have raised several times including the future of the Jaguar brand and the 2024 quota for 22% of car sales must be electric and potential fines. Separately, they quote the CFO of the parent Tata Group, that the FY24 goal of net debt free is in jeopardy.

To give credit to JLR management, this was all flagged in prior calls. Short-term momentum remains positive for JLR, but the burning question is whether investors compensated for the large transition risk to electrification for a relatively small OEM player.