Investors are getting a little concerned about Tata Motors' plans. Tata is in the process of bringing out what will be the world's cheapest car — the Nano — and just announced that they'll have an electric model of the Nano out during the current fiscal year.

The company is also looking to raise $1.7 billion so that it can pick up Ford's Jaguar and Land Rover businesses at current rock bottom prices. Investors are worrying whether Tata is biting off more than it can chew. Quite a few investors are selling the stock. Interestingly, though, there are a few investors that are picking up the stock, saying that the stock is going to explode as part of the overall boom in India's economy.

Despite the support Tata is getting from some investors, however, the company's stock is getting lower rankings from analysts. Motley Fool, a well known investment website, has marked the stock down from five stars to four stars.

Investors were comfortable with Tata's proposals to build electric cars. It's the company's choice to take on production of gas guzzlers like Land Rover and Jaguar that is making investors back away — it's a choice that just doesn't seem like good business in the long run as more car buyers switch to hybrids and other auto options.

Photo — Bbjee