Tesla CEO Elon Musk to visit India to meet Prime Minister Narendra Modi

The government will require automakers to commit to investing at least $500 million and starting domestic manufacturing within three years to qualify for tax cuts. In exchange, automakers that meet these requirements will be allowed to import up to 8,000 electric vehicles costing $35,000 or more per year at a 15% tax rate.

Under current regulations, India levies taxes of 70% or even 100% on imported electric vehicles, depending on their value. Imports of electric vehicles at the lower tax rate will be allowed for a maximum period of five years.

India's Ministry of Commerce and Industry said the new policy will strengthen the electric vehicle ecosystem by promoting healthy competition among electric vehicle players and will, among other things, result in lower production costs and volume of higher production. It will also be boost the Make in India initiativeModi has made aggressive efforts for years to strengthen India's manufacturing industry.

Tesla puts pressure on New Delhi has reduce import taxes on electric vehicles for yearsbut local manufacturers objected every change. Musk has frequently cited high import taxes as the main reason why Tesla has not invested much in India. The company's plans to sell its cars in India as early as 2017 have been delayed due to the country's high taxes.

In July, Tesla representatives reportedly discussed plans to build a factory that would make a brand new electric vehicle at $24,000. Later this month, company representatives are expected places of recognition in India for a new local manufacturing plant that requires an investment of 2 billion dollarsReuters reported.

They have already met

Although their last face-to-face meeting took place last June, Modi and Musk have known each other for over a decade.

The Indian Prime Minister visited Tesla's facility in Fremont, California in September 2015. Musk and then Chief Technology Officer JB Straubel gave Modi and his entourage a tour of the facility and showed off the lithium batteries -Tesla ion, based on videos posted online. Musk and Modi also discussed how batteries and solar panels could help generate electricity in rural India.

Last year, Musk admitted that he was a fan of Modi and was incredibly excited about India's future. About a month before his meeting with Modi, the Tesla CEO said his company would choose a location. for a new Tesla factory by the end of 2024 and expressed interest in India.

I am confident that Tesla will be in India and will do so as soon as possible, Musk told reporters last June.

A bad first quarter and still promises

The meeting with Modi is expected to take place in the week of the 22nd, according to Reuters. This Tuesday, April 23, Tesla will release its full first quarter results after the bell.

The electric vehicle maker has already announced its deliveries for the January to March period, revealing a disappointing quarter that an analyst named a nightmare.

The car manufacturer said so delivered 386,810 electric vehicles in the first three months of 2024. This fell far short of Wall Street expectations and sparked further doubts from investors, with Deutsche Bank analysts noting that the disparity between vehicles sold and vehicles manufactured confirms that there could also be a serious demand problem. Wells Fargo analyst Colin Langan also called Tesla a growing business without growth.

Tesla investors are hoping that a lot of new information will be revealed by Tesla's earnings report and earnings call scheduled for later today.

After denying information according to which Tesla cancel plans for a $25,000 electric vehicleMusk promised investors that an autonomous robo-taxi would be revealed on August 8, although there is a several reasons why analysts and investors are skeptical. The company is also expected to face questions related to settling a lawsuit with the family of a diver who died in a 2018 accident involving the use of Teslas. driving assistance programAutomatic pilot.

Tesla is also faces his latest trial for labor rights violations former workers at the Fremont plant, which was accused of being a hotbed of racist and sexist harassment. Two former Tesla employees accused the company of failing to compensate workers for overtime, sick pay, vacation pay, meal breaks and rest breaks, as well as failing to provide written descriptions of mandatory quotas.

If Musk can provide good news to investors, particularly those linked to India, it could help give Tesla shares a much-needed boost. Tesla shares are down nearly 1% on Thursday and have lost more than 31% this year, making it the worst performer in the S&P 500.