Tesla’s stock price (TSLA) has seen a sharp drop this week. Investors are worried because sales are going down in key markets like the UK. However, in India, the company is trying new ways to attract buyers.
If you are an investor or just follow Elon Musk’s company, here is everything you need to know about why Tesla’s share price is moving and what is happening in India.
Current Market Status: What is Happening?
As of February 6, 2026, Tesla’s share price is trading around $396 to $400 USD. The stock has fallen by about 2.2% recently and is down nearly 9% since the start of 2026.
For a company that was once growing very fast, this is a worrying sign. Wall Street analysts are debating whether to buy or sell the stock right now.
Why is Tesla Stock Falling?
There are three main reasons for the recent drop in share price:
1. Poor Sales in the UK New reports show that Tesla’s sales in the United Kingdom crashed by 57% in January 2026 compared to last year. The UK is a very important market for electric vehicles (EVs). When sales drop there, it affects the global confidence in the company.
2. Tough Competition from China Chinese car companies like BYD and MG are selling good electric cars at much lower prices. Tesla is finding it hard to compete with them. In many countries, people are choosing BYD over Tesla because it offers better value for money.
3. Risky Future Bets Elon Musk has decided to stop making some older models (like Model S and X) to focus on new projects like the Robotaxi (Cybercab) and the Optimus Humanoid Robot. While these sound exciting, they will not bring in big money immediately. Investors prefer steady car sales over future promises.
Big Moves in India: Discounts and EMIs
While the global stock is struggling, Tesla is working hard to survive in the Indian market. In 2025, Tesla sold only about 225 cars in India, which is very low.
To fix this, Tesla India has announced two major offers this week to boost sales:
- Cheap EMI Plans: You can now buy a Tesla Model Y with an EMI starting at ₹49,000 per month.
- Exchange Bonus: If you exchange your old petrol or diesel car for a Tesla, you get a discount (bonus) of ₹3 Lakh.
- Partnerships: Tesla has tied up with Spinny, a used car platform, to make exchanging old cars easier.
These steps show that Tesla is desperate to increase its numbers in India, which is a huge potential market.
Expert Forecast: What Happens Next?
Market experts are divided. Some analysts believe the stock will go down further, possibly touching $270, because car sales are shrinking. They worry that Tesla’s focus on robots instead of cheap cars is a mistake.
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However, other experts think 2026 will be a “catalyst-rich” year. If Elon Musk successfully launches the Robotaxi service later this year, the stock could shoot up again.
FAQ: Frequently Asked Questions
1. Is Tesla coming to India officially?
Yes, Tesla is already selling cars in India (like the Model Y), but sales have been slow. They are currently offering discounts to get more customers.
2. Why is Tesla share price important for Indian investors?
Many Indian investors buy US stocks through apps like INDmoney or Vested. Since Tesla is a popular company, its price movement directly affects their portfolio.
3. Is it a good time to buy Tesla shares?
The stock is currently “volatile” (moving up and down a lot). Since sales are down, it is a risky buy. Experts suggest waiting to see if the new India offers and the Robotaxi launch help the company grow.
4. Who is Tesla’s biggest competitor?
Globally, the Chinese company BYD is the biggest rival. In India, Tesla competes with luxury EVs from Mercedes, BMW, and Hyundai.
5. What is the current price of Tesla stock?
As of early February 2026, it is trading near $396 USD.
