Electric vehicle (EV) giant Tesla Inc TSLA looks to produce and sell battery storage systems in India. The EV maker has submitted a proposal seeking incentives to establish a factory in the country, Reuters cites familiar sources.
While Tesla has been in discussions with Indian officials regarding setting up an EV factory to produce an affordable $24,000 car, its renewable energy plans have remained undisclosed until now.
Currently, cars over $40,000 incur a 100% tax, while other vehicles attract a tax of 70%. For example, Tesla's famous Model Y starts at $47,740 in the U.S. before tax credits.
The report noted during recent meetings in New Delhi, Tesla presented its "Powerwall" system, designed to store energy from solar panels or the grid for use during outages or at night. Although Tesla sought various incentives for its battery storage factory, Indian authorities indicated these would be unavailable.
Tesla's Powerwall plans are part of the company's broader strategy for India, extending beyond EVs. The company aims to find residential and industrial customers for its battery storage systems.
Despite increasing power supplies to towns and villages, India has experienced electricity shortages during peak demand. India aims to boost its non-fossil fuel power capacity to 500 GW by 2030, up from 186 GW.
Tesla's Powerwall caters to domestic and light commercial use. To unlock the market, Indian officials have indicated that Tesla must work on reducing the cost of its battery storage products.
India continues to attract U.S. companies amid the Western country's escalating geopolitical friction with China. Nvidia Corp NVDA CEO Jensen Huang recently concluded a tour of India, focusing on business opportunities in the nation.
Huang discussed the potential for India to become a hub for artificial intelligence (AI) talent, chip production, and a market for Nvidia's products.
Price Action: TSLA shares traded lower by 2.00% at $257.34 on the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Jeff Roberts via YouTube
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
