After a year-long rebranding hiatus, Jaguar’s marketing team appears to have struck gold. Its new campaign certainly raised eyebrows and put the luxury car maker at the center of social media discussion and into the headlines.
Despite the initial skepticism, the campaign appears to – at the very least – not have had no adverse effects on the stock price of Jaguar’s parent company, the Indian giant Tata Motors (NSE: TATAMOTORS), and may have even enabled modest gains.
Specifically, TATAMOTORS shares are up 1.27% in the last 24 hours – the time frame corresponding to the release of the car maker’s new ad featuring a brand new electric vehicle (EV) model.
Picks for you
Furthermore, Jaguar stock is up 3.65% since November 19 – the day the initial controversial advertisement aired – despite initially facing backlash on X and the shares being 2.91% in the red in the last 30 days.
Will the ‘Type 00’ rejuvenate Jaguar shares?
Part of the reason Jaguar’s latest EV – the Type 00 – sparked significant discussion and mockery on social media is its design.
The car, being blocky and featuring large wheels, represents a strong departure from the sleek and sporty models the luxury car maker is known for and is, in many ways, more reminiscent of Elon Musk’s retro-futurism and Tesla’s (NASDAQ: TSLA) Cybertruck.
Generally, a large part of the company’s rebrand has been centered on creating a clear division line between what Jaguar was and what Jaguar – or, as its new image dictates, JaGUar – is.
The first public step in this direction was the November 19 ‘Copy nothing’ commercial, which was marked by a lack of cars in the ad and a flamboyant style that many commentators interpreted as ‘woke.’
Despite some initial threats of a boycott amidst the perceived positioning within the ‘culture war,’ the bulk of the backlash centered on the apparent disconnect between the video and vehicles.
Even Elon Musk, the billionaire owner of X, jabbed Jaguar and asked the company if it even makes cars, only to comment he is looking forward to the new models.
Finally, it is worth pointing out that Jaguar’s rebrand might still be in flux, as the ‘Type 00’ is generally referred to as a concept rather than a production design.
Why Jaguar stock is still in danger of a downturn
Elsewhere, much like Jaguar stock’s drop in the immediate aftermath of the ‘Copy nothing’ commercial was most likely driven by broader factors, TATAMOTORS shares’ rally might be in jeopardy due to the overall state of the Indian market.
India’s NIFTY 50 index, for example, recently flashed a ‘baby death cross,’ hinting at a possible imminent correction, per the information shared by Barchart.
The technical analysis (TA) signal was described as the ‘baby’ version as it featured the 50-day moving average (MA) crossing below the 100-day MA and not the 200-day MA, as is usually the case.
A downturn at this stage would signal a continuation of a protracted decline Indian stocks have been facing since September due to the weakness in earnings, fears of overvaluation, and analyst firms’ cautious guidance.
