By @Maria Merano from Twitter
Roth Capital analyst Craig Irwin, who has a $150 price target on TSLA, believes Tesla’s market potential in India might be bigger than the lead EV automaker’s market in China.
“The entry into the Indian market I expect to be a big, big boost for [Tesla]. You know, I’ve been talking about this, I guess for about a year now, but [Tesla has] 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. So there are some short-term boosts that they’re looking at,” Irwin told Yahoo Finance host Zack Guzman.
Irwin is the furthest from an ardent Tesla bull, arguing in the interview that TSLA is “sentiment-driven” more than anything. “Yeah, so valuation of Tesla is really sentiment-driven more than anything. You know, fundamentals I don’t think are part of the picture,” he said.
He also mentioned Tesla’s recent challenges with the media in China, the Apple Car, and Elon Musk’s Bitcoin statements on Twitter as headwinds for TSLA. The analyst’s comments on India’s potential for Tesla are remarkably bullish considering Irwin’s bearish stance.
For some perspective, TSLA bull Dan Ives from Wedbush believes that TSLA could soar back up to $1,000 in 2021 if Tesla’s demand in China remains strong. Since it entered the Chinese car market, Tesla’s fundamentals have improved over time. Entering the car market in India might do the same for Tesla, which TSLA bear Craig Irwin seems to recognize, albeit only for a “short-term boost.”
India launched a $27 billion program to attract manufacturers from other Southeast Asian countries, like China and Vietnam. According to Reuters, India wants to take a more significant share of the global supply chain and exports for electric vehicles. According to Reuters, India is considering an $8 billion incentive as part of the $27 billion EV program for carmakers and suppliers over the next five years to encourage investments in India’s EV market.
Tesla has been taking steady steps to build its presence in India. The EV automaker is rumored to be setting up a manufacturing plant in Bengaluru. It also seems like Tesla plans to open showrooms in three key cities in India, namely in New Delhi, Mumbai, and Bengaluru.
S3XYWORLD Offer Premium Tesla Aftermarket Accessaries. SHOP Here.