Tesla proposes local plant in India in strategy shift
KeithBinns
The pursuit by Tesla (NASDAQ:TSLA) to build a factory in India has restarted with company representatives holding talks with government officials about car and battery incentives.
Sources indicate that Tesla (TSLA) has also discussed plans to manufacture electric vehicle batteries locally in addition to proposing to build a factory in India to build electric vehicles.
The report may indicate a shift by Tesla (TSLA) toward local production and away from pushing for lower import taxes on cars after those talks did not lead to an agreement. The Indian government has been steadfast in its demand that Tesla commit to building a local manufacturing hub before it would drop the high tariff rate.
India is reported to have set aside around $6B under two programs to boost electric vehicle sales and manufacturing, with incentives aimed at selling and exporting locally made vehicles and parts. India is the largest automobile market that Tesla (TSLA) does not sell cars in and could be a key component for its long-range target of selling 20M electric vehicles a year.
Shares of Tesla (TSLA) moved up 1.27% premarket on Thursday to $176.07 after gaining 4.41% on Wednesday. The EV stock fell earlier in the year when the India plans appeared to have stalled.
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