Shares of Tata Motors zoomed to a 52-week high on Monday on the buzz that it was set to enter into a partnership with Tesla and that the electric vehicle giant may even take a stake in its passenger vehicle (PV) business.

However, a Tata Motors spokesperson denied any such development. “Tata Motors has not taken any decision regarding a strategic partner for its PV business and categorically denies any and all rumours suggesting the same,” the company said in a statement.

Last year, the homegrown auto firm had said it was looking for a partner in its PV business after its board approved the setting up of a new subsidiary in the segment.

On Monday, the buzz that Tesla may choose Tata Motors for its much awaited India foray set the latter’s stock soaring on the exchanges. On the BSE, the stock rose almost 14 per cent to hit an intra-day high of Rs 225, a new 52-week high. However, it gave up some of the gains to close at Rs 220.10, a gain of 11.11 per cent over the previous close. Close to 80 lakh shares were transacted on the exchange which was higher than the two-week average quantity of 32.53 lakhs.

Road, transport and highways minister Nitin Gadkari had last month told PTI in an interview that Tesla is set to start its operations in India by setting up a distribution facility (sale centres) in India this year and based on demand, it could look to set up a manufacturing facility as well.

This came after Tesla Inc co-founder and chief executive Elon Musk in October said the company would enter the Indian market in this year. “Next year for sure,” he had said while replying to a query on Tesla’s India plans on Twitter.

Following this announcement, the Maharashtra government had invited Tesla for investing in the state even as it also held preliminary discussions with the company. State tourism and environment minister Aaditya Thackeray had said he and industries minister Subhash Desai held a video call with Tesla executives to invite them to the state.

In fact, the Pune facility of Tata Motors is its “most versatile”. Apart from being a full range supplier of both commercial and passenger vehicles, the facility boasts of delivering more value per vehicle as it is a highly integrated plant with regard to core processes such as engines, gear box and paint shop.