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Tesla Faces Price Target Cut Amid India Expansion

Tesla Faces Price Target Cut Amid India Expansion

Tesla ( (TSLA) ) has been popular among investors this week. Here is a recap of the key news on this stock.

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Tesla’s stock is facing a challenging period as Goldman Sachs analyst Mark Delaney has lowered the price target from $315 to $285, citing an 8% downside from current levels. Despite an overall positive outlook for the U.S. auto sector, Delaney maintained a ‘Hold’ rating on Tesla, pointing to potential headwinds such as the expiration of federal EV tax credits and rising auto prices due to tariffs. The average price target for Tesla stock stands at $296.80, implying a 4.2% downside, with the stock having lost 23.3% year-to-date. Analysts remain divided, with a consensus ‘Hold’ rating based on 14 Buys, 13 Holds, and nine Sells.

Meanwhile, Tesla is making strategic moves by opening its first showroom in India, located in Mumbai. This marks Tesla’s formal entry into the Indian market, with plans to sell imported EVs, specifically the Model Y SUVs. The high import duties in India pose a challenge, but Tesla aims to test the market sentiment with a limited number of vehicles. The company’s India operations will be managed by its China team, following the resignation of its India head. Tesla’s expansion into India is seen as a move to utilize excess production capacity and explore new markets amid declining global sales.

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