EV maker Tesla (TSLA) seems to be preparing for its long-awaited entry into India, as the company is refunding early Model 3 reservation holders, according to emails reviewed by Bloomberg. These bookings were made years ago, before Tesla discontinued older versions of the Model 3. In the email, Tesla explained that they are returning the reservation fees for now but plan to reach out again once their product offerings in India are finalized.
It is worth noting that high import tariffs, the lack of local manufacturing, and the absence of a supercharger network have kept Tesla out of India, despite it being the world’s third-largest car market. Import duties, along with luxury taxes, nearly doubled the cost of a Tesla, making it too expensive for most consumers in a highly price-sensitive country. Indeed, Tesla CFO Vaibhav Taneja recently said that while India’s large middle class is an attractive opportunity, the company must be cautious because tariffs make their vehicles unaffordable for many buyers.
However, the timing for Tesla to enter India may finally be right. Ongoing trade talks between the U.S. and India could soon make things easier for Tesla. In fact, Treasury Secretary Scott Bessent recently noted that the country could be the first to sign a bilateral trade deal with the U.S., thanks to fewer trade barriers and minimal government subsidies. Meanwhile, Tesla’s stock continues to climb on Friday, gaining 24% over the past four days after reporting its first-quarter results.
Is Tesla a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 17 Buys, 11 Holds, and 12 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $284.74 per share implies that shares are fairly valued.
