China has expressed disapproval of Elon Musk's plan to open a Tesla factory in India. The Global Times has predicted challenges for Tesla in the immature Indian market, recommending India to partner with Chinese companies for EV manufacturing.
Elon Musk, CEO of Tesla, announced his upcoming meeting with Prime Minister Narendra Modi in India via X. Speculation suggests Musk's visit aims to unveil Tesla's ambitious project, which has been in the works for years. The project is expected to entail significant investment, likely around $2-3 billion, to establish a factory producing entry-level electric cars
Reliance-Tesla: Tesla is making strides towards entering the Indian automobile market, with talks of a potential joint venture with Mukesh Ambani's Reliance Industries to establish a manufacturing facility. The move aligns with India's push for electric vehicles, with attractive land proposals from states like Maharashtra and Gujarat.
Electric-car optimism wanes as sales slow for Ford and Tesla. Hertz sells off electric cars, Audi slows E.V. transition. Challenges include cost, range, and infrastructure. Critics find electric cars lacking sensory experience and powerful acceleration, impacting younger generations' preferences.
While the next-generation Roadster with record-setting acceleration, range and performance might offer a glimpse into the future, US-based Tesla, Vietnam’s Vinfast, China’s BYD and many other global luxury car makers may bet on premium feature-led electric models for the Indian market.
The billionaire boss of the electric car maker did not provide details, saying only in his post on X that the "Tesla Robotaxi unveil" will come on August 8.
Tesla has canceled its affordable Model 2 car, which was expected to drive the company's growth into a mass-market automaker. The decision comes as Tesla faces fierce competition from Chinese electric-vehicle makers, who are offering cars as low as $10,000. The new plans call for robotaxis to be produced in much lower volumes than the projected Model 2, with Tesla's cheapest current model, the Model 3 sedan, retailing for about $39,000 in the US. Tesla shares were down about 3% in early afternoon trading after the Reuters report.
Tesla has initiated the production of right-hand drive cars at its Germany plant for export to India later this year, according to sources familiar with the matter. A team from Tesla is expected to visit India soon to explore potential sites for a local manufacturing plant, which would require an investment of around $2 billion. India recently reduced import taxes on certain electric vehicles if manufacturers invest at least $500 million in the country and start production within three years, a move that benefits Tesla.
Tesla is set to send a team to India this month to explore potential locations for a proposed $2 billion to $3 billion electric car manufacturing plant. This move follows India's recent reduction in import taxes on certain electric vehicles, provided carmakers invest at least $500 million and initiate domestic production within three years.
Tesla faced a sharp decline in quarterly sales, sparking concerns about Elon Musk's leadership as competitors like BYD, Kia, and Hyundai saw increases in electric vehicle sales. The market is shifting, with mainstream buyers possibly put off by Tesla's unconventional design and service issues. The company must address challenges to regain momentum.
India's policy aims to attract Tesla for local manufacturing, creating competition with Tata Motors in the luxury car segment. The market sees potential growth with key players like Tata, MG, and Mahindra in the EV sector.
Data from car portal 16888.com analysed by Bloomberg shows BYD has cut prices of more than 100 model versions compared with December, and relaunched a further 70 model trims with lower prices. About the only unaffected models come from its launched Yangwang brand, including its newly unveiled supercar, which goes for 1.68 million yuan ($233,000).
Nissan Motor unveiled plan to launch 30 new models by March 2027, targeting 1 million increase in global sales. Nissan is focussing on cost-cutting for profitability, aiming for 6% operating profit margin and 30% shareholder returns.
The company earlier in March told employees at its Shanghai factory to lower output of both the Model Y sport utility vehicle and Model 3 sedan.
India on Friday slashed import duties on premium electric vehicles produced by carmakers that commit to invest at least $500 million and start domestic manufacturing within three years to 15% from 100% (on cars priced upwards of $40,000) or 60% (for those priced below that threshold), a move that may pave way for Tesla's entry into the country.
Government of India supports EV makers to test Indian market pre-local manufacturing. Focus on Tesla, China, policy tweak, domestic auto firms, electric mobility, production-linked incentives, Suzuki, Toyota, hybrids, competitive intensity, energy transition, export market.
India's electric vehicle market is expanding rapidly with government support and increasing consumer awareness. Tata Motors leads the market with a range of popular models, while MG Motor India, Mahindra & Mahindra, and BYD are also prominent players.
Tesla Share Price: The fall in sales in its key market dimmed the outlook for Tesla's global deliveries, at a time when the top EV maker is battling a decline in demand and rising competition, and is weighed down by a lack of entry-level vehicles and the age of its product line-up.
Vietnamese electric vehicle maker VinFast has requested India to reduce import duties on its cars for about two years while a local manufacturing plant comes on stream in Tamil Nadu. VinFast hopes to start production, for domestic sales first and then exports, by the middle of next year. India is considering the requests but has not made a decision.
China's BYD, once a laughingstock in the auto industry, has surpassed Tesla in global sales of fully electric cars and is on track to become the market leader in China. With its low manufacturing costs, BYD is rapidly expanding exports to Europe and building assembly lines in multiple countries. However, its success has attracted scrutiny and could lead to trade barriers and tariffs. BYD's growth is unparalleled in the industry, and it has benefited greatly from China's dominance in the electric vehicle market.
But excluding one-time items such as the $5.9 billion noncash tax benefit for deferred tax assets, the company made $2.49 billion, or 71 cents per share. That was down 39% from a year ago and short of analyst estimates of 73 cents per share according to FactSet.
Elon Musk, Tesla CEO, warns that Chinese automakers, such as BYD, with their cheaper models, are a significant threat to global rivals in the EV market. Chinese car companies are highly competitive and have the potential for significant success outside of China, depending on trade barriers. Musk acknowledges that without trade barriers, Chinese automakers will demolish most other car companies worldwide.
Tesla CEO Elon Musk has long whetted fans' and investors' appetites for affordable electric vehicles and self-driving robotaxis that are expected to be made on next-generation, cheaper electric car platforms.
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