Tesla (TSLA) is all set to roll out its EVs in India, as the first shipment is reportedly expected to arrive soon. Bloomberg, citing sources, reported that the U.S.-based EV giant plans to ship thousands of cars to a port near Mumbai in the next few months, opening up its brand to the world’s biggest population. The news follows Elon Musk’s meeting with Indian Prime Minister Narendra Modi at the White House last week, after which Tesla officials announced plans to start hiring in India.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Tesla Moves Closer to India Launch
With these latest moves, Tesla seems ready to launch the brand in the Indian market. After the shipment, Tesla is expected to focus on establishing its manufacturing unit in India. According to a Times of India (ToI) report, the company contacted several state governments, including Gujarat, Tamil Nadu, and Maharashtra, for potential factory locations. Moreover, Tesla has reportedly approached Indian automobile company Tata Motors’ (IN:TATAMOTORS) executives for a potential collaboration.
Tesla plans to build a manufacturing plant with a capacity of 500,000 vehicles, investing between $2 billion and $3 billion. In its initial proposal to the government, the company outlined plans to produce a brand-new budget EV for India, expected to be priced between ₹20-25 lakh. Reports further suggest that Tesla plans to sell its cars in Indian cities like New Delhi, Mumbai, and Bengaluru by the third quarter of the year.
Furthermore, Tesla plans to send its cars to India from its factory in Germany, not from China, even though China is much closer to India. The ToI report stated that Tesla chose this longer route because the Indian government had some concerns about shipping from China.
Tesla’s entry into India has been tough due to high import taxes. However, a recent customs duty cut in India from 110% to 70% on cars over $40,000 could ease Tesla’s journey ahead.
Is Tesla a Good Stock to Buy?
On Wall Street, analysts have maintained a neutral stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 13 Buy, 12 Hold, and 10 Sell recommendations. The average price target for Tesla shares is $351.38, which is almost similar to the current level.
