Tesla Inc TSLA may use its future Indian factory as a base for exports, an analyst told Bloomberg on Monday.
What Happened: Gartner Senior Research Director Pedro Pacheco said that the Elon Musk-led automaker could utilize the Indian manufacturing unit as an export base and leverage several markets at the same time.
The analyst noted the possibility while taking into account the constraints Tesla faces in emerging markets.
“Considering the price of a Tesla, Elon Musk probably won’t be able to sell an EV to most of the population in emerging economies,” Pacheco told Bloomberg.
See also: How to Invest in Tesla Stock
According to Pacheco, the Palo Alto, California-based automaker is likely to target a “fast-growing group of affluent individuals” in markets with large populations and potential for economic growth.
Why It Matters: Over the weekend, it was reported that Tesla will set up an EV manufacturing facility in Karnataka, India.
The news was confirmed by Karnataka’s Chief Minister B.S. Yediyurappa in a statement, according to local media outlets and Reuters.
See Also: Why Tesla Will Find Indian Auto Market A Tough Nut To Crack
Since the beginning of the year, there has been a buzz around the automaker’s India entry.
Price Action: Tesla shares closed 0.55% higher at $815.12 on Friday and gained almost 0.2% in the after-hours session.
Click here to check out Benzinga’s EV Hub for the latest electric vehicles news.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.