*et_markets* Tesla's much-anticipated entry into India has triggered sharp stock market reactions, with shares of domestic automakers such as Mahindra & Mahindra (M&M) and Tata Motors taking a hit. However, market fears appear overblown, and analysts believe the long-term impact on Indian auto stocks will be limited. Instead, Tesla's foray could serve as a catalyst for premiumisation in the sector and expansion of the country's EV ecosystem, *ultimately benefiting local players.* Tesla's India entry has coincided with a selloff in Indian auto stocks, as concerns over competition from the US EV giant spooked investors. M&M shares have fallen 5% in a week, while Tata Motors recently touched a 52-week low. However, analysts argue that these declines are largely knee-jerk reactions rather than an indication of long-term fundamental weakness.