Tesla (NASDAQ:TSLA) is eyeing a new market for its EVs – India. According to the Financial Times, the electric vehicle giant plans to dispatch a team to India by late April to assess potential locations for its upcoming EV plant. The projected value of this proposed plant could range from $2 billion to $3 billion.
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Moreover, the report stated that Tesla will likely prioritize its focus more toward Indian states with automotive hubs such as Maharashtra, Gujarat, and Tamil Nadu. Interestingly, last month, the Indian government lowered import duties on EVs manufactured by automakers committed to investing $500 million and willing to start local production within three years.
Tesla’s India push comes at a time when the demand for its EVs is slowing down in the U.S. and it is facing stiff domestic competition in China. This has led to Tesla reporting dismal Q1 vehicle deliveries that left investors and analysts disappointed.
This Hedge Fund Is Bearish on TSLA
Meanwhile, the disappointing Q1 vehicle deliveries prompted Per Lekander, a hedge fund manager to say that “the company could go bust,” and TSLA stock could drop to $14. Tesla reported Q1 deliveries of 386,810 vehicles, below analysts’ expectations of vehicle deliveries of 457,000.
Lekander’s investment firm, Clean Energy Transition has been shorting Tesla’s stock since 2020. This means that Lekander stands to profit if TSLA’s stock drops.
Is Tesla a Buy, Sell, or Hold?
Analysts remained sidelined about TSLA stock with a Hold consensus rating based on nine Buys, 19 Holds, and seven Sells. Year-to-date, TSLA stock has declined by more than 30%, and the average TSLA price target of $196.72 implies an upside potential of 18.9% at current levels.
