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Tesla (TSLA) shares are drawing attention on Friday after the automaker confirmed plans of opening its first showroom in Mumbai, India on July 15.
Tesla vehicles sold in India will be imported from the company’s giga factories located in Shanghai and Berlin as the EV maker doesn’t currently have a manufacturing facility in India.
Tesla stock has been rather volatile in recent months. At writing, it’s up some 45% versus its year-to-date low set in early April – but down more than 25% versus its year-to-date high set in January.
Is India the Much-Needed Catalyst for Tesla Stock?
Tesla deciding in favor of launching a showroom in Mumbai is a major positive for investors as it signals its strategic entry into one of the world’s largest and fastest-growing auto markets.
Initially, the company plans on importing vehicles from Shanghai and Berlin – potentially avoiding upfront manufacturing costs while testing demand and building presence in India.
Moreover, the showroom launch could help it offset slowing sales in mature markets like the U.S. and Europe.
Investors are cheering TSLA shares as this expansion may be a calculated step toward international diversification, with India offering a new revenue stream and a foothold for future manufacturing.
Goldman Sachs Remains Cautious on TSLA Shares
Despite the India announcement, Goldman Sachs reiterated its “Neutral” rating on Tesla shares this morning and lowered the price target to $285, indicating potential downside of about 8% from here.
The investment firm expects TSLA to remain challenged as it believes electric vehicles will account for a smaller percentage of the overall auto sales in the U.S. moving forward.
Additionally, President Donald Trump has signaled plans of cutting government subsidies to Tesla, which could further weigh on the EV stock in the second half of 2025.
Wall Street Agrees With Goldman Sachs on Tesla
Slowing EV sales and the potential impact of the Elon Musk-Trump feud is making other Wall Street firms take a guarded stance on TSLA shares as well.
The consensus rating on Tesla stock currently sits at “Hold” only with the mean target of roughly $298 signalling potential downside of about 4% from current levels.
