M&M Stock Faces Worst Week in Five Years Amidst EV Competition and Tesla's Potential India Entry

Mahindra & Mahindra (

) shares are facing significant pressure, potentially its worst week in five years. A confluence of factors is driving this downturn, including intensifying EV competition, stock overvaluation concerns, and recent subsidiary investments. The EV sector is heating up, with rumors of reduced import duties potentially paving the way for Tesla's India entry. While this poses a competitive threat, analysts at Geojit Financial suggest Tesla may struggle to match M&M's pricing and distribution. M&M's own EV ventures have seen success, with recent SUV launches garnering 30,000 bookings on day one.   Despite this, M&M's stock has declined 18% in two weeks. The company's board recently approved investments in subsidiary rights issues, raising concerns about resource allocation. While most analysts maintain a "buy" rating, the combined pressure from EV competition and market sentiment has taken a toll. The coming weeks will be crucial for M&M to demonstrate resilience and capitalize on its EV momentum