Servotech Renewable shares rise 4.5% on reports of Elon Musk's father Errol Musk's factory visit in June

Shares of Servotech Renewable Power Systems saw strong upward momentum on Monday, May 19, rising by as much as 4.5 percent during intraday trading. The uptick followed reports that Errol Musk—the father of Tesla and SpaceX CEO Elon Musk—is planning a visit to India between June 1 and June 6, during which he is expected to tour Servotech’s manufacturing facility. The visit is linked to his recent appointment to the Global Advisory Board of the company, which has fueled fresh investor optimism.

Servotech Renewable Power Systems, which focuses on renewable energy and electric vehicle (EV) charging solutions, formally announced Musk’s appointment last week. As per the company’s official press release, Errol Musk will play a central role in guiding Servotech’s global expansion, helping the firm achieve its ‘Vision 2027’—an ambitious roadmap that aims to transform the renewable energy ecosystem in India and establish Servotech as a sustainability leader in key international markets.

Musk’s advisory position is expected to bring international experience and a fresh perspective to the Indian clean energy player. The company said that his engagement will include a wide range of activities, from interacting with key policymakers and investors to actively participating in board-level strategic discussions. He is also expected to contribute to media outreach initiatives and promote Servotech across his personal social media platforms.

Commenting on the development, Raman Bhatia, Managing Director of Servotech Renewable Power Systems, said, “We are absolutely thrilled and honored to welcome Errol Musk to the Servotech Renewable family. His vast experience, profound global insights, and unwavering passion for groundbreaking innovation will be invaluable as we accelerate our mission to forge a greener, smarter future for India and beyond.”

The announcement of Errol Musk’s engagement with Servotech comes at a significant time. His visit is expected just months ahead of Elon Musk’s anticipated trip to India later this year. Elon had earlier held a virtual meeting with Indian Prime Minister Narendra Modi, sparking speculation about Tesla’s plans to enter or expand in the Indian EV space. 

Boost From Indian Railways Solar Order

In addition to the buzz surrounding Errol Musk’s involvement, Servotech’s business momentum appears to be strengthening. In April, the company revealed it had secured a rooftop solar order from the Waltair Division of the Indian Railways’ East Coast Railway zone. The ₹15 crore contract involves a 4.1 MW on-grid solar installation, covering multiple sites.

Under the scope of the agreement, Servotech will handle the design, supply, installation, testing, and commissioning of rooftop solar photovoltaic (PV) systems. The order aligns with Indian Railways’ broader efforts to green its operations and reduce its carbon footprint by integrating renewable energy solutions across its infrastructure.

A High-Return Performer

From a stock performance standpoint, Servotech Renewable Power Systems has delivered notable returns over the past year. The stock has risen nearly 48 percent over the last 12 months and gained another 5 percent so far in May. This follows a modest 0.4 percent dip in April, and a strong 9 percent rally in March. However, the stock did experience significant declines earlier in the year, falling 24.6 percent in February and 10.7 percent in January.

Despite these fluctuations, the long-term trajectory remains impressive. Over the past three years, Servotech’s stock has delivered a staggering 1,200 percent return, marking it as a true multibagger in India’s smallcap renewable energy space.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.