Tesla is sending a team to India to scout locations for a $2 bn - $3 bn electric car plant.
👉 Background: Tesla is the electric vehicle company with the largest market capitalisation of any car manufacturer at a massive $527 billion USD.
👉 What happened: Tesla is sending a team to India to scout locations for a $2 bn - $3 bn electric car plant. This new move has come while demand for electric vehicles is slowing down in major markets of the US and China.
👉 What else: And after India, last month reduced import taxes on electric vehicle companies who commit to investing in domestic manufacturing, as an attempt to balance the pros and cons of importing.
💡There’s usually a tradeoff when importing goods – between lower prices and boosting local manufacturing.
💡Countries usually import goods when it's cheaper compared to local manufacturing. This often puts local manufacturers at a major disadvantage, as they're forced to compete with the cheaper prices of imported goods.
💡In this case, it looks like India's trying to get the best of both worlds. India's only reducing import taxes of electric vehicle companies that will invest locally so that it can take advantage of Tesla's electric vehicle technology while also boosting the local economy.
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