Indian Investors Are Piling into Tesla TSLA Stock Before Products Have Launched

Photo by Dirk Waem/AFP via Getty Images

This year Tesla (NASDAQ: TSLA) continues to amaze with its steadily rising share price. In this regard, as well as in anticipation of the company's entry into the Indian market, residents of the country also began to make larger bets on Tesla. The US stock market has rebounded faster than the markets of India and other emerging countries after the coronavirus pandemic crash, prompting interest from Indian investors. Data from Indian brokerage firms show Tesla is emerging as the new favorite, Reuters reported.

Indian brokerage Vested Finance said it held $2.5 million in Tesla stock in November. For comparison, they presented data for the end of March, when they held $76,000 of Tesla shares. Another brokerage firm, Stockal, said its clients’ Tesla holdings have quadrupled to $10 million during the period.

“Some investors have just created accounts to be able to invest in Tesla,” Vested’s CEO Viram Shah said. "We would have never imagined that a company which is not even present in India would be the most popular."

Indians' interest in Tesla was also stimulated by statements by Tesla CEO Elon Musk that the company would enter the Indian market. On September 21, it became known that the company is in talks with the industry department of the Karnataka state government to set up a research and development (R&D) center in Bangalore to harness the potential of India's tech capital. Musk also said that Tesla is finally ready to enter the Indian market in 2021.

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Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.