Tesla and its significance
Musk replied to a tweet of an Indian fan group on twitter last year about Tesla's arrival by saying- "next year for sure".
Owned by Elon Musk, Tesla produces electric vehicles and energy-generation products bringing in the likes of ‘self-driving technology’ and being economically successful with net-income increasing 146% year-over-year.
Tesla cars with zero emissions are the future of ‘healthy travelling’. Tesla will help India eradicate air pollution and pave the way for a healthy environment. Existing automobile players like Tata Motors, Morris Garage and Mercedes can get inspiration from Tesla and in the verge of a better EV to be made, infinite possible technologies can be introduced and will act as a catalyst for creating a better environment at ‘just the right time’.
Lithium ion batteries
India doesn't have a significant quantity of Lithium in its soil but making itself the hub of 'Li-ion' battery manufacturers can be one way to compensate for it. EVs stand on the backbone of Li-ion batteries constituted in them and with an increase of such cars, India has the capacity to handle the export of 25% of Li-ion batteries in the world by 2025.
The government subsidies in this sector are helping businesses thrive.
Challenges for Tesla
The budget announced on Feb 1, 2021 didn't go well for automobile sectors and was no-good for EVs.
The custom duty on vehicle parts imported has been hiked from 10% to 15%. EVs are most prone because of spare parts like cranks, frames and batteries being imported.
Tesla will have to go for a local manufacturing plant to avoid the higher duties or maybe collaborate with a pre-existing manufacturing plant to justify ROI.
Other benefits to India
Tesla may soon be listed on the BSE (Bombay stock exchange) and NSE (National stock exchange) directly allowing Indians to invest in the company.
Tesla will bring in job opportunities and push India's case in become an EV manufacturing hub by 2030.
It'll be a big impetus to the "Make in India" program of the Modi government.
Are you excited about Tesla coming to India? Do you plan on buying it? Also, will you be investing in Tesla's stock?
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