Hamartia Antidote
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- Elon Musk had previously slammed India's sky-high import duty that makes Tesla cars pricier in the country.
- The EV pioneer apparently doesn't want to give up, with reports suggesting its executives are planning a visit to India.
What Happened: A group of senior Tesla executives is expected to visit India and meet federal government officials in the country, Bloomberg reported.
The contingent will include C-suite executives and managers from Tesla's supply chain, production, and business development teams stationed in Texas, the report said.
These executives will reportedly meet government representatives, including those from Prime Minister Narendra Modi's office. The discussion points will center around the local sourcing components of Tesla models, the report said, citing people familiar with the matter.
Tesla has had on-and-off negotiations in the past about setting up a manufacturing plant in Bengaluru, the capital city of the southern state of Karnataka. The talks ran into rough weather as Elon Musk wanted India to lower the staggering duty on the import of Tesla's EVs into the country before it can bring manufacturing to the country.
India also took exception to selling China-made Tesla cars in the country.
Why It's Important: Tesla's rumored overtures come against the backdrop of tech giant Apple, Inc.diversifying production away from China and to India and Thailand.
https://www.benzinga.com/quote/aapl
The strategic move was necessitated by production disruption in China due to repeated outbreaks of COVID-19 in China in 2022. The frosty relationship between the U.S. and China also added another element of risk to production concentration in China.
Apple CEO Tim Cook was in India last month for the opening of two Apple stores in India, underlining the importance of India in the tech giant's scheme of things.
Tesla is strategically focusing on Mexico as the site for its sixth Gigafactory, aiming to solidify its global presence. Construction and hiring are currently in progress, with the company aiming to commission the factory swiftly.
Additionally, reports indicate Tesla’s plans to establish a manufacturing plant in Indonesia. Interestingly, Elon Musk’s recent meeting with French President Emmanuel Macron sparked speculation about the company potentially expanding its operations in France.
In premarket trading on Tuesday, Tesla stock rose 0.21% to $166.70, according to Benzinga Pro data.
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