EV maker Tesla (TSLA) has taken a significant step towards entering the Indian market by signing a lease deal for its first showroom in Mumbai, according to lease documents provided to Reuters by analytics firm CRE Matrix. The company plans to sell imported cars in India, which is a goal that it put on hold last year. According to the lease agreement, Tesla will occupy 4,003 square feet of space in the Maker Maxity building in Mumbai’s Bandra Kurla Complex. The company will pay an annual rent of approximately $446,000 for the first year, which will increase by 5% each year. The lease is for a period of five years.
The Mumbai showroom is one of two locations that Tesla has selected in India, with the other one being in New Delhi. This development comes after Tesla CEO Elon Musk met with Indian Prime Minister Narendra Modi in the U.S. The move is seen as a positive step towards Tesla’s entry into the Indian market, which is expected to drive growth for the company as it taps into the country’s growing demand for electric vehicles.
And there is no doubt that Tesla could use this boost from India, especially since sales in the U.S., Europe, and China continue to get hammered. In fact, Tesla sold only 1,429 cars in Germany last month – a decline of 76%. For reference, total sales of electric vehicles in the country rose by 30.8% to 35,949. Therefore, the company likely hopes that the Indian EV market’s expected annual growth rate of 28.52% can help offset these declines.
Is Tesla a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 12 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $346.72 per share implies 28% upside potential.
