'A Graveyard for Western Brands': Tesla Stock (NASDAQ:TSLA) Gains With India Expansion Plans

Business Insider

19-07-2025

The last few months have not been great ones for electric vehicle giant Tesla (TSLA). Demand for several cars is falling, there is the possible loss of federal government tax incentives for purchasers of Tesla cars, and an overall economic uncertainty have all hurt Tesla's position. But Tesla is not taking this lying down, and is looking to move into India to help augment its position. This may not be the help Tesla hopes it will be, but investors seem pleased. Shares of Tesla were up nearly 2.5% in Friday afternoon's trading.
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
On the surface, a move to India is a good play. It is the third largest car market, after all, which opens up some real possibilities for Tesla to make headway. However, India is also regarded as the '…graveyard for Western brands' for a reason. Brands like Ford (F) and Chevrolet (GM) have made their appearances therein over the years, and have been sent packing. Both brands exited the market entirely over the last 10 years.
Could Tesla be different? Certainly, it could. The Indian government is already on record as saying it wants more electric vehicles operating within the country to cut down on air pollution, which is reportedly at 'dangerous' levels. Tesla just opened a showroom in Mumbai, which serves as the 'economic capital' of India. But with tariffs and export costs, Indian consumers are apparently going to be on the hook to the tune of double what a United States buyer would pay for a Model Y, and that could be a problem.
Introducing the Model 3+
But Tesla may have an answer here, in the form of its Model 3+, which is about to be launched. This model is set to launch in China, though it could go anywhere from there. And there will likely be interest, as the Model 3+ is expected to boast a range of about 500 miles. Filings with the Ministry of Industry and Information Technology in China did not declare what exactly the range is, so these are projections only.
While the Model 3+ is a rear-wheel-drive vehicle with a single motor, that motor has been beefed up somewhat. It is now a 225 kW motor, and that motor will power new 'ternary lithium-ion battery cells.' Most believe that this is Tesla's attempt to pursue the upper-level market in China, as it has mostly lost the lower-level to home-grown competition.
Is Tesla a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 13 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. After a 33.53% rally in its share price over the past year, the average TSLA price target of $298.97 per share implies 8.07% downside risk.