India and EU Reach Agreement on Car Tariffs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Source: Benzinga
- Significant Tariff Reduction: The Indian government has reached an agreement with the EU to lower car import tariffs from 110% to 40%, with a potential future reduction to 10%, benefiting approximately 200,000 vehicles and significantly lowering consumer costs.
- Market Potential Unlocked: This tariff adjustment will benefit automakers like Tesla and Stellantis, and while EVs won't enjoy reduced tariffs in the first five years, Tesla could supply vehicles from its Berlin Gigafactory to enhance market share in India.
- Competitive Landscape Shift: The tariff reduction will greatly enhance Stellantis's expansion potential in India, particularly for its locally produced Jeep and Citroen brands, allowing them to strengthen their market competitiveness.
- US-India Trade Relations Unresolved: While India has reached an agreement with the EU, a similar deal with the US remains elusive, as the US still imposes a 50% tariff on India, which could affect American automakers' strategies in the Indian market.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 401.93 USD with a low forecast of 25.28 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 416.560
Low
25.28
Averages
401.93
High
600.00
Current: 416.560
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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