Tesla To Debut In India By 2021, Expects Roth Capital's Irwin, Raises Price Target

Roth Capital analyst Craig Irwin in a note Monday said his sources suggest Tesla TSLA is preparing to enter the Indian market and that the automaker's Indian foray would have implications similar to its entry into China.

The Tesla Analyst

Irwin upgraded his rating on Tesla’s stock to Neutral from Sell and increased the price target from $350 to $750.

The Tesla Thesis

The rating upgrade from Irwin, a Tesla skeptic, comes due to the checks he conducted, which indicate that Tesla is planning its entry into India, as reported by the Motley Fool.

Irwin revealed that his contacts have informed him that Tesla plans to launch an electric mini-car in the price-sensitive Indian market. 

The size of the vehicle is expected to be similar to Bayerische Motoren Werke AG’s (OTC: BAMXF) Mini Cooper or Fiat Chrysler Automobiles NV’s (NYSE: FCAU) Fiat 500. 

According to Irwin, the vehicle’s sale in India could start as soon as 2021. He expects tangible evidence regarding the automaker’s plans to emerge by the end of this year.

Why It Matters

Tesla CEO Elon Musk, responding to a Twitter user asking about the arrival of Model 3 in India last week, said, “hopefully soon.”

Sorry, should hopefully be soon!

— Elon Musk (@elonmusk) July 10, 2020

The billionaire entrepreneur also suggested in another tweet that the automaker could consider designing and manufacturing a smaller hatchback than its Model Y for countries with smaller roads than the United States at its upcoming Berlin plant. 

Price Action

Tesla shares traded 4.5% higher at $1,565.00 in the pre-market session on Tuesday.