This article first appeared on GuruFocus.
Tesla (NASDAQ:TSLA) may have entered India with brand swagger and long-term ambition, but the initial numbers tell a more muted story. Since launching sales in mid-July, the company has received just over 600 confirmed ordersfar below internal projections, according to people familiar with the matter. For context, Tesla delivers that many cars globally every four hours. The company now plans to ship 350 to 500 units to India by year-end, with the first batchsourced from Shanghaiexpected to arrive in early September. Deliveries will be confined to four citiesMumbai, Delhi, Pune, and Gurugramreflecting both Tesla’s limited physical footprint and the volume of fully paid orders received.
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Tesla’s uphill climb in India is shaped by more than logistics. Import tariffs as high as 110% have pushed the entry-level Model Y’s sticker price above 6 million rupees (about $68,000), well beyond the ?2.2 million range where most EV sales happen. That pricing alone may explain the disconnect between showroom interest and actual conversions. While foot traffic at Tesla’s new New Delhi showroom has been strong, sales have not followed at the scale Tesla was counting on. Attempts to rely on brand power and Musk’s earlier rapport with President Trump haven’t yielded relief. Bilateral tensions have deepened after Trump imposed 50% tariffs on Indian exports, citing the country’s ongoing energy ties with Russia. Tesla’s bet that U.S.-India trade talks would eventually reduce duties now looks increasingly uncertain.
Meanwhile, competitors are not waiting. BYD (BYDDF) has sold over 1,200 units of its Sealion 7 SUV in India during the same period, priced around ?4.9 millionbelow Tesla’s threshold, but still within the high-end segment. The broader picture offers further context: just over 2,800 EVs priced between ?4.5M and ?7M were sold in India during the first half of 2025, according to JATO Dynamics. Tesla is still pushing forward, with Superchargers now installed in Delhi and Mumbai, and a third experience center planned in South India. But in a price-sensitive, tariff-heavy, politically complex market, Tesla’s global growth narrative will need more than just brand equity to take hold.
