Tesla (TSLA) Will Open New Showrooms in India Next Month

EV maker Tesla (TSLA) is finally entering the Indian market and is starting with new showrooms in Mumbai and New Delhi. Indeed, the Mumbai location is expected to open in mid-July, with the New Delhi showroom following shortly after. This move comes just months after Tesla CEO Elon Musk met with Indian Prime Minister Narendra Modi to discuss import taxes and local manufacturing, as India currently imposes a steep 70% tax on fully-built imported cars that cost under $40,000.

Interestingly, Bloomberg reported that Tesla has already shipped five Model Y SUVs from its Shanghai factory to Mumbai. These vehicles were valued at about 2.77 million rupees, or roughly $32,000, but were hit with over 2.1 million rupees in import duties, which raised the sticker price to more than $56,000. That’s significantly more than the Model Y’s U.S. price of around $40,000, which could be a challenge in a country where electric vehicles make up just 5% of new car sales, while luxury EVs make up less than 2%. Still, Tesla plans to grow in India, with new warehouses coming to Karnataka and Gurugram.

To encourage EV adoption and manufacturing, India introduced a policy in March 2024 that allows foreign carmakers to import up to 8,000 EVs per year at a lower tariff if they commit to investing at least $500 million in local production. In response, Tesla has reportedly proposed building a $2–3 billion factory in India that could eventually produce up to 500,000 vehicles annually.

What Is the Prediction for Tesla Stock?

Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 12 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $286.14 per share implies 10.4% downside risk.

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