Tesla (TSLA) reopens talks with India, proposes new EV factory
Reuters reports, citing a source with direct knowledge of the matter, that electric vehicle giant Tesla (NASDAQ: TSLA) told government officials on Wednesday they would like to build a factory in India to build electric cars for domestic sale and export.
The proposal comes after India refused to agree to Tesla's request last year to lower the import tax on cars, which can reach as much as 100%. India insisted that Tesla manufacture vehicles locally but Tesla wanted to test the market first with imports. The talks ended in a deadlock.
Tesla had hired a local team and began a search for showroom space, but that was also abandoned last year.
According to the source, Tesla did not discuss lower import taxes with Indian officials. The EV maker instead proposed setting up a new factory, although without specifying a location or investment.
Senior Tesla executives are in India this week. Tesla met officials from Modi's office and other ministries on Wednesday, said the person and another source familiar with the matter.
Shares of TSLA are up 3.59% in early trading on Wednesday.
By Michael Elkins | [email protected]