It's been a fairly wild ride for Tesla (TSLA +0.73%) in 2025. With sales falling in key markets, a brutal price war in China, and consumer backlash against CEO Elon Musk dipping his toes in the political pool, there's been plenty of bad news to digest. Pushing that aside for a second, however, let's take a look at the electric vehicle (EV) maker's recent moves to boost sales and set up its robotaxi future.
What's up in India?
Tesla's setting up to make a move in the world's third-largest automotive market as the EV maker aims to offset falling sales around the globe by opening showrooms in India next month. Already, Tesla Model Ys are arriving in India, shipped from Tesla's China factory.
While this might seem like a sudden move, it's actually the culmination of many years of considering entering the market, and pulling back due to disagreements over tariffs and manufacturing. That seemed to change when Musk met Indian Prime Minister Narendra Modi in the U.S. last February.
This won't be an easy task for Tesla, however. Due to tariffs the Model Y is expected to go on sale in India around $56,000 before taxes and insurance. This compares to $44,990 for the same model in the U.S. market, which drops to $37,490 with tax credits applied -- for however long that lasts. Further, India's EV share of its automotive market is just over 5%, and premium cars represent less than 2% market share.
It's a good move for Tesla, and a logical one, especially considering China's automotive production overcapacity problem -- although it's less a problem for Tesla -- and sending vehicles from China to India helps. But investors would also be wise to temper growth expectations; the market isn't exactly ripe for the picking when it comes to expensive EVs.
Robotaxi time
After years of promising, the moment has finally arrived for Tesla's robotaxi ambitions. Over the weekend Tesla launched a small pilot robotaxi service in Austin, Texas, which some believe is the beginning of a much more lucrative business thesis for the automaker.
Tesla's Cybercab. Image source: Tesla.
"We attended Tesla's robotaxi launch ... and got the opportunity to take multiple rides in a robotaxi," Wedbush Securities said in a research note June 22, according to Automotive News. "Overall, these robotaxis exceeded our expectations and offered a seamless and personalized travel experience that has lit the spark for autonomous driving."
For investors, the development of Tesla's robotaxi business could define its future. Already Tesla's market capitalization is over $1.1 trillion, more than many of its automotive competitors combined, and Musk has said the company's pivot to AI, robotics, and robotaxis will multiply that valuation several times.
Tesla's robotaxi pilot included short drives in a limited geofenced area for a flat fee of $4.20, and while the vehicles were fully autonomous there was a safety monitor in the cars for safety precautions. Considering some of the missteps and problems of its competition, the company was probably wise to promote safety first.
NASDAQ: TSLA
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What it all means
The robotaxi pilot might have been small, and Tesla opening showrooms in India won't move the needle in the near term, but these were both smart moves for Tesla and its investors. Being able to export vehicles from China amid a brutal price war and overcapacity gives the company flexibility, and keeping investors enticed with a potentially lucrative robotaxi future was important.
While there's plenty of bad news for Tesla investors to digest, don't overlook the small positive moves its made recently as well.
