Tesla Could Find An Even Bigger Market In India Than China, Says Analyst

Tesla Inc.’s TSLA entry into the Indian market could give the electric vehicle maker a big boost and the market could eventually be even bigger than China, according to Roth Capital Partners analyst Craig Irwin.

What Happened: “You know, I've been talking about this I guess for about a year now, but they have actually been building out stores in India and building out supply chain in India. And that market will be just as big as China, maybe even bigger, in the long-run,” Irwin told Yahoo Finance during a discussion about the electric vehicle industry.

See also: How to Invest in Tesla Stock

The analyst also noted that Tesla’s valuation is more sentiment-driven than based on fundamentals, and the sentiment has been impacted by recent adverse events in China, Apple Inc.’s AAPL reported deal with LG Electronics Inc. for the Apple Car, and Musk’s flipflop on apex cryptocurrency Bitcoin (BTC).

See Also: Bitcoin Crashes Below $32,000, Takes Tesla, Coinbase, MicroStrategy And Other Cryptos Down With It

Why It Matters: Tesla has recently made several moves as part of its plan to enter the Indian market, including hiring local talents to oversee its operations in the country. India’s huge market holds similar potential for Tesla as China does.

It was reported in April that Tesla is planning to open its first showroom and an office in Mumbai, India’s financial capital.

The Palo Alto-based company has already registered its headquarters in the southern Indian city of Bengaluru.

India is also reported to have offered incentives to Tesla to produce electric vehicles in the country to compete with China’s cost of production.

Price Action: Tesla shares closed almost 2.5% lower in Wednesday’s regular trading session at $563.46 and further declined 0.9% in the after-hours session to $558.36.

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