The boss of Tesla and the richest man on the planet, Elon Musk, is currently stirring up trouble in economic and financial circles. After the many twists and turns in the Twitter case, Tesla’s decision puts an end to more than a year of deadlocked discussions with Indian government officials, the car manufacturer first seeking to test demand by selling electric vehicles imported from its production centers in the United States and China, at lower rates. But the Indian government is pushing You’re here to commit to manufacturing locally before lowering customs duties, which can reach 100% on imported vehicles. Friday, Tesla stock offered a recovery (+ 5.71% to 769.59 dollars). The stock had lost more than 23% over the previous six sessions after all of the week’s Twitter announcements.
Arm wrestling between Tesla and the government
Result, Tesla paused plans to import cars to India after Prime Minister Narendra Modi’s government failed to offer concessions when presenting its budget and fiscal policy on February 1, the sources added, who requested anonymity as the deliberations took place in private. You’re here and an Indian government spokesperson did not immediately respond to a request for comment.
Other projects in the pipeline
During months, You’re here has been looking for premises to open showrooms and service centers in the cities of New Delhi, Bombay and Bangalore, but that project is also on hold, two of the sources said.
You’re here has also given additional responsibilities in other markets to certain members of its local team. Its head of policy and development in India, Manuj Khurana, has had “product” responsibility in San Francisco since March, as shown in his LinkedIn profile.
Narendra Modi has sought to lure manufacturers as part of his ‘Make in India’ campaign, but his Transport Minister Nitin Gadkari said in April it would not be a ‘good proposition’ for You’re here to import cars from China to India. By taking this decision, Tesla is temporarily cutting itself off from a relatively large market on the planet.