Tesla is facing challenges in the Indian market as its Model Y SUV struggles to sell due to high import tariffs. The company is offering discounts up to Rs 2 lakh to clear excess inventory, but competition from local manufacturers and lower-priced alternatives is impacting sales.

Meanwhile, Chinese automaker BYD is thriving in India, delivering over 10,000 EVs and expanding its portfolio. Mercedes-Benz is also seeing success with EV sales growing 12% in 2025. Tesla stock has gained 36.6% in the past six months but carries a Zacks Rank #4 (Sell).

As Tesla navigates pricing challenges in India, BYD and Mercedes-Benz are making strides in the EV market. Tesla’s stock performance has been positive, but its valuation and value score raise concerns. The Indian EV market is evolving rapidly, with local manufacturers gaining traction alongside global brands.

Read more at Nasdaq: Will Tesla’s Model Y Discounts Be Enough to Spark India Demand?