M&M Shares Climb as UBS Upgrades Rating, Dismisses Tesla Threat

& Mahindra (M&M) shares experienced a 3% rally following an upgrade to "Buy" from UBS, despite a slight reduction in the price target. The positive sentiment was further fueled by UBS's assessment that concerns surrounding Tesla's potential entry into the Indian market are largely "overreactions." UBS analysts believe that Tesla's current vehicle offerings are "not-well suited" for Indian market conditions due to their low ground clearance, sedan form factor, and high price points. They anticipate "limited impact" on M&M's market share from Tesla's potential entry, suggesting that the existing fears are exaggerated. The brokerage firm also expressed confidence in M&M's ability to navigate current market dynamics, predicting a revival in demand. While they slightly lowered the price target, the upgrade to "Buy" signifies a positive outlook on the company's future performance.