<div id="readability-page-1"><p>When it rains, it pours, and that's a saying that <strong>Tesla</strong> <span>(TSLA<span> 3.13%</span>)</span> investors know all too well right now. If consumer backlash against CEO Elon Musk's political stint wasn't enough, a number of executives have left the company recently, sales are in decline globally, its vehicle lineup is aging, its Cybertruck was a commercial flop, and it's facing a growing number of lawsuits surrounding its Autopilot and Full Self-Driving (FSD) systems, among other developments -- it's certainly raining.</p> <p>The bad news? Tesla's latest move could signal just how desperate the automaker is right now.</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjU2MzUvY3liZXJjYWJfNzUuanBnJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="393" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjU2MzUvY3liZXJjYWJfNzUuanBnJnc9NzAw"/></p><p>Tesla Cybercab. Image source: Tesla.</p> </div> <h2>To India!?</h2> <p>Entering the world's third-largest automotive market can't be the worst strategic move, right? While that would be the common thought process, the scenario is a bit different between Tesla and India. That's because while India is the third-largest automotive market, Tesla's Model Y, which the company recently launched in India, will target an electric vehicle segment that represents a modest 4% of overall sales.</p> <p>To make matters worse, Musk himself has long criticized India for its steep tariffs on import vehicles. In fact, importing vehicles into India can often result in tariffs and related duties that can exceed 100%, drastically driving up the price for consumers.</p> <p>Tesla's strategy is simple: Take excess inventory from countries where demand and sales have plunged, and move it to a new market. The problem is that, due to tariffs and duties, Tesla's Model Y starts at about $70,000 in India -- the highest price among major markets. That compares unfavorably to roughly $45,000 in the U.S., $36,700 in China, and $53,700 in Germany.</p>  <p>On one hand, it seems like a worthwhile attempt to stoke some sales globally, but on the other hand, it does seem like a move of desperation as the company deals with global sales adversity for the first time. That said, this isn't the first time Tesla has flirted with India. The company once considered opening a factory there and has commented that it still hopes to do research and development and manufacturing in India one day.</p> <h2>What's next for investors?</h2> <p>Some of the best investing advice can be summed up with &#34;invest in what you know.&#34; That's the dilemma for some long-term and potential Tesla investors. The automaker is almost in an identity crisis, figuring out whether it's a vehicle manufacturer, a robotaxi company, a robotics company, an artificial intelligence business, or some combination of the above.</p> <p>Not only do Tesla investors have to worry about Musk's time being divided between SpaceX, X (formerly Twitter), Neuralink, and xAI, among others, but there's also concern about a deepening tie to politics.</p> <p>&#34;Tesla is heading into one of the most important stages of its growth cycle with the autonomous and robotics future now on the doorstep and cannot have Musk spending more and more time creating a political party which will require countless time, energy, and political capital,&#34; wrote Dan Ives, a Wedbush Securities analyst known for being a Tesla bull, according to CNN Business.</p> <p>That's why it'll be as important as ever for investors to tune in to Tesla's annual shareholder meeting, scheduled for November, to see what insights and vision management has going forward. For long-term investors, backlash will likely eventually fade, although it'll take time to mend the trust with consumers. However, for new potential investors, it may be wise to watch this from the sidelines until Tesla figures out its identity.</p>                                                                            </div>

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<p>Tesla is facing significant challenges, including declining sales, executive departures, and legal issues. The company's recent move to enter the Indian market with the Model Y, despite high tariffs leading to a starting price of $70,000, may indicate desperation. Analysts express concern over CEO Elon Musk's divided attention among various ventures and the company's unclear identity. Investors are advised to closely monitor the upcoming shareholder meeting for insights into Tesla's future direction, while new investors may consider waiting before investing.</p>

- Tesla faces significant challenges, including declining sales, executive departures, and lawsuits related to its Autopilot systems.  
- The company's recent entry into the Indian market aims to address excess inventory, but high tariffs result in a steep price for the Model Y, limiting its appeal.  
- Investors are advised to monitor Tesla's upcoming shareholder meeting for insights on the company's direction amid concerns over CEO Elon Musk's divided focus and the company's identity crisis.

This Move From Tesla Screams Desperation