Tesla Inc. (TSLA) is off to a slow start in India. Since opening sales in mid-July, the electric vehicle maker has received just over 600 orders, well below expectations, according to a Bloomberg report. As a result, the company now plans to ship only 350 to 500 cars to India this year, compared to its original annual quota of 2,500 vehicles.
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The first batch is set to arrive from Tesla’s Shanghai plant in early September, with deliveries limited to four cities — Mumbai, Delhi, Pune, and Gurugram.
Tesla’s Premium Pricing Hits Demand
Tesla’s biggest challenge in India is cost. With import tariffs as high as 110%, the entry-level Model Y is priced at more than 6 million rupees ($68,000) in India. That’s nearly three times higher than the average price of about 2.2 million rupees, where most EVs in India are sold. As a result, Tesla’s cars remain out of reach for most buyers in a country where EVs make up only 5% of total car sales.
Tesla’s brand has brought many visitors to its showrooms, but those visits have not turned into strong orders. The company’s choice to depend on its name instead of advertising has also hurt it in a market where local rivals run big ad campaigns.
This weak reception in India adds to Tesla’s global challenges. The company’s sales fell 13% in Q2 2025, and it is under pressure to avoid a second straight year of decline as demand slows in its core markets of the U.S. and China.
Rival BYD Gains Ground in India
Chinese EV maker BYD (BYDDF) has found room to grow in India even with the same high tariffs. The company sold more than 1,200 Sealion 7 SUVs in the first half of 2025, with prices starting at about 4.9 million rupees.
At the same time, Tesla is moving ahead more slowly. It is installing superchargers in Mumbai and Delhi and plans to open a third showroom in South India in 2026. However, the weak start in India raises fresh doubts about Tesla’s ability to grow in new markets.
Is Tesla Stock a Buy?
Analysts remain cautious about Tesla’s long-term outlook. On TipRanks, TSLA stock has a Hold consensus rating based on 13 Buys, 14 Holds, and eight Sell ratings. The average Tesla price target of $306.42 implies 8.2% downside potential from current levels. Year-to-date, TSLA stock has lost 17.3%.
