- Key Points
- Speaking on an earnings call, Tesla’s CFO confirmed reports that the company is working on expanding into India, noting that it would be a great market to enter thanks to its “big middle class.”
- However, the executive said that the company was still trying to figure out the right time for the entry as it navigates tariff concerns.
Elon Musk meets with Indian Prime Minister Narendra Modi at Blair House in Washington, DC, USA on February 13, 2025.
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Tesla
CFO Vaibhav Taneja stated on Tuesday inside the United States that the electric vehicle producer is cautiously navigating an entry into India, as the company faces tariff threats and falling sales. Taneja showed reviews that the company is considering expanding into India at some point in an income name, including that the USA’s “huge middle class” could make it a wonderful marketplace to go into. However, he stated that India’s electric-powered vehicle imports are concerned to a 70% tariff and a 30% luxury tax, making it “a completely difficult marketplace.” This ought to make Teslas offered in India twice as expensive. “That’s why we’ve been very careful seeking to figure out whilst is the right time… Those varieties of matters create a little bit of tension, which we’re seeking to address in session,” he added.
Even though the U.S. protectionist rules pose a few challenges for the electric car manufacturer. India has expressed a desire for Tesla to set up a base there. Taneja’s statements come only a few days after Elon Musk, CEO of Tesla, spoke with Narendra Modi, Prime Minister of India, approximately collaboration in generation and innovation. During Modi’s February journey to Washington, D.C., he additionally met with Musk, which fueled speculation about Tesla’s plans for India. That same month, sources instructed Experssepaper18 that the agency was thinking about importing EVs from its Berlin plant into the U.S. S As early as April.
The government of India has proposed a new policy that could lessen EV tariffs from approximately 70% to fifteen% % for agencies that intend to localize some production. Still, professionals have instructed Experssepaper that Tesla’s stock price might be driven down because of the plan, and the employer is probably to push for greater coverage adjustments. However, American President Donald Trump’s new tariffs placed on U.S. trade
Partners, consisting of India, could cast a cloud over capacity negotiations between Tesla and New Delhi.
India has already been issue to extra tariffs of 10%, but if a 90-day pause on Trump’s “reciprocal tariffs” expires without a change settlement among the United States and India, these tariffs may want to upward thrust with the aid of 26%. On Monday,
Vice President JD Vance met with Modi in India and praised the “widespread” development in trade negotiations between the 2 nations. Tuesday, Tesla launched unsatisfactory first-quarter results, which include a 20% decrease in car revenue year over year and a 71% lower in net profits