New Delhi, Feb. 26 -- Mahindra & Mahindra's stock price has corrected ~15% in the past two weeks vs the Nifty which was down ~3%, largely after news flows of Tesla entering India, with a reduced duty structure. Contrary to news flow, we believe Tesla is more likely to enter the country with the pricier Model Y and not even the Model 3, leave alone the yet to be launched Model 2.

Tesla prices in India are likely to be ~4x+ average selling prices of vehicles currently and ~2x over the next five years if the Model 2 is launched. In the EU, the US and China, this ratio currently is ~1.0-1.5x;

Tesla's BEV market share is 10-15% in the EU & China and ~44% in the US. This translates to PV market share of less than 5% in these regions. "If we w...