Tesla (TSLA) ready to invest $2B to build in India

On Friday, a report by The Economic Times revealed Tesla (NASDAQ: TSLA) is ready to invest up to $2 billion towards establishing a factory in India if the country’s government cuts import duty on its vehicles to 15% for the first two years of operations.

It was revealed in August that India is in the process of creating a new EV policy aimed at significantly reducing import taxes in exchange for local manufacturing commitments. The new policy could potentially cut import taxes down to as low as 15%. Currently, cars priced above $40,000 face a 100% tax, while the rest encounter a 70% tax.

According to The Economic Times report, the Elon Musk-led EV manufacturer, Tesla, is prepared to invest approximately $500 million should the government approve a reduced duty for 12,000 vehicles. Moreover, if the concession extends to cover 30,000 vehicles, Tesla is willing to escalate its investment up to $2 billion.

The report states that the government is currently assessing the viability of Tesla's proposed $2 billion investment. However, they want to reduce the number of cars imported on a lower duty, compared to Tesla's proposal.

Shares of TSLA are down 0.35% in pre-market trading on Friday.

By Michael Elkins | [email protected]

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