EV maker Tesla (TSLA) is off to a slow start in India, as roughly 100 of the 300 Model Y vehicles it first shipped to the country last year are still unsold about four months later. Indeed, some early potential customers have backed out of purchases, which has left Tesla offering discounts of up to 200,000 rupees, or about $2,200, on certain versions of the SUV in order to move inventory. Notably, these discounts are being offered directly to shoppers and test-drive customers rather than through a public nationwide promotion.
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Nevertheless, this weak demand highlights the difficulty of breaking into India, the world’s third-largest car market, where imported vehicles face taxes as high as 110%. In fact, Tesla launched in India with only the Model Y at a price point of nearly $70,000, which put it squarely in the luxury segment. However, interest has been softer than expected, with only about 600 bookings reported in September and just 227 cars registered in all of 2025.
The competition in India is tough because buyers are comparing Tesla with cheaper or better-equipped alternatives. For instance, some customers who test-drove the Model Y have opted instead for models like BMW’s (BAMXF) iX1 or BYD’s (BYDDF) Sealion 7, both of which start at lower prices. Interestingly, BMW’s India sales jumped nearly 200% last year, thanks to its locally built iX1, while BYD’s registrations rose by 88% to more than 5,400 vehicles.
What Is the Prediction for TSLA Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 11 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $394.12 per share implies 9.6% downside risk.
