Turkey's sovereign wealth fund is preparing to take a stake in domestic electric-vehicle maker TOGG, as two of its current shareholders look to sell their combined 46% holding, according to Reuters.
The fund, known as Türkiye Varlık Fonu (TVF), is in talks to buy the stakes held by Vestel Elektronik and Anadolu Group Holding, two Turkish industrial groups that each own 23% of TOGG. Turkcell, the Turkish telecom company that also holds a 23% stake, is expected to increase its own holding as part of the deal.
TOGG was launched after President Recep Tayyip Erdogan pushed for a locally funded passenger car to put Turkey on the global EV map. The company is currently owned equally by Vestel, Anadolu Group, Turkcell, and BMC Otomotiv, each with 23%, with the remaining 8% held by TOBB, a Turkish business association.
What's behind the ownership shuffle?
The reported move would mark a significant shift in TOGG's shareholder structure. If TVF and Turkcell buy out Vestel and Anadolu, the wealth fund would become a major owner alongside Turkcell, giving the state a more direct hand in the automaker's direction.
For Vestel and Anadolu, selling their stakes could free up capital and reduce exposure to a capital-intensive business like car manufacturing. For TVF, the purchase fits a pattern of state-backed entities stepping in to support strategic industries, particularly those tied to national prestige and technological ambition.
Turkcell's expected increase in its stake suggests the telecom operator sees value in deepening its involvement in TOGG, even as the company faces the challenges common to new EV entrants: high production costs, building a charging network, and competing with established global automakers.
Why this matters for investors
For everyday investors, the key takeaway is that TOGG's ownership is becoming more concentrated in state-aligned hands. That could mean the company prioritises national goals—such as local production and job creation—over pure profit, which is typical for state-backed ventures.
It also signals that Turkey is doubling down on its EV ambitions. The government has been keen to promote domestic manufacturing and reduce reliance on imported energy, and EVs are central to that strategy. A stronger state role could bring more funding and policy support, but it also raises questions about governance and commercial discipline.
Investors in Vestel and Anadolu Group may see the sale as a positive, as it removes a potentially volatile business from their books. For Turkcell shareholders, the increased stake adds exposure to a high-profile but unproven automaker, which could be a risk if TOGG struggles to scale.
As with any sovereign wealth fund investment, the deal is likely to be scrutinised for transparency and whether it delivers value for Turkish taxpayers, who ultimately back the fund.
What to watch next
The talks are still ongoing, and no final agreement has been announced. Investors will be watching for the terms of the deal, including the price TVF and Turkcell pay for the stakes, and whether other shareholders follow suit.
They'll also be looking at TOGG's production and sales numbers. The company has started delivering its first SUV model, but like many EV startups, it faces an uphill battle to reach profitability. The involvement of a deep-pocketed state fund could ease that path, but it also ties the company's fortunes more closely to the government's priorities.
For those following the broader EV sector, the deal is a reminder that state backing can be a double-edged sword: it provides capital and stability, but it can also mean decisions driven by politics rather than markets. As TOGG's ownership shifts, its ability to compete on merit will be the real test.
