In a recent interview with Fox News, U.S. President Donald Trump shared his thoughts about Tesla (TSLA) potentially building a factory in India. Unsurprisingly, he called it “unfair” to the U.S. Trump’s issue isn’t with the factory itself but rather with the fact that India’s high tariffs on cars make it difficult for American companies like Tesla to sell their vehicles in the country. This isn’t the first time Trump spoke out about India’s tariffs, as he brought it up during a recent U.S. visit by Indian Prime Minister Narendra Modi.
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Tesla CEO Elon Musk has also been vocal about India’s tariffs, which can be as high as 100% on electric vehicles. Musk argues that these tariffs give local automakers like Tata Motors (IN:TATAMOTORS) an unfair advantage, which makes it impossible for foreign companies to compete in the Indian market. However, India has recently announced a new EV policy that could change things.
Indeed, if a carmaker invests at least $500 million and sets up a factory, they’ll qualify for a significantly lower import tax rate of 15%. As a result, Tesla is moving forward with its plans for India, despite Trump’s comments, and has selected locations for two showrooms in New Delhi and Mumbai. It has also posted job ads for mid-level roles in the country.
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. After an 87% rally in its share price over the past year, the average TSLA price target of $340.50 per share implies 6% downside risk.
