Tesla CEO Elon Musk will visit India to meet PM Narendra Modi

Tesla CEO Elon Musk is anticipated to journey to India within the coming weeks to meet with Prime Minister Narendra Modi, fueling hypothesis that the electrical car maker will announce a brand new funding within the nation.

The billionaire will meet with Modi through the week of April 22 in New Delhi, India’s capital, and will make separate bulletins about Tesla’s India plans, Reuters reported Wednesday. Nonetheless, the sources mentioned Musk’s agenda is topic to change.

The journey comes as India enters right into a two-month-long election on April 19, wherein Modi is widely expected to cruise to victory and safe a 3rd time period in workplace. Almost 1 billion persons are eligible to vote within the election and outcomes will be made public on June 4.

“Trying ahead to assembly with Prime Minister @NarendraModi in India!” Musk wrote on X, the social media website he owns, Wednesday, confirming Reuters’ reporting.

Right here’s what we all know.

India (lastly) gave Tesla a significant boon final month

India’s federal authorities final month lowered import taxes on select electric vehicles made by automakers beneath sure situations. The transfer comes after years of lobbying by Tesla officers and primarily advantages Musk’s firm.

The federal government will require automotive corporations to commit to investing a minimum of $500 million and start home manufacturing inside three years to qualify for decrease taxes. In return, automakers that meet these necessities will be allowed to import up to 8,000 EVs that value $35,000 or extra yearly at a tax fee of 15%.

Beneath present rules, India levies taxes of 70% and even 100% on imported EVs, relying on their worth. Electrical car imports on the decrease tax fee will be allowed for a most of 5 years.

India’s Ministry of Commerce and Trade mentioned the brand new coverage will “strengthen the EV ecosystem by selling wholesome competitors amongst EV gamers” and lead to decrease manufacturing prices and better manufacturing quantity, amongst different issues. It will additionally “boost the Make in India initiative,” Modi’s aggressive years-long push to strengthen India’s manufacturing business.

Tesla has been lobbying New Delhi to lower import taxes on EVs for years, however local manufacturers have opposed any modifications. Musk has frequently cited high import taxes as the first motive Tesla hasn’t significantly invested in India. The corporate’s plans to promote its vehicles in India as quickly as 2017 had been delayed due to the nation’s excessive taxes.

In July, Tesla representatives reportedly discussed plans to build a factory that might make an all-new $24,000 EV. Later this month, firm representatives are anticipated to scout places in India for a brand new native manufacturing plant that might require a $2 billion investment, Reuters reported.

They’ve met earlier than

Though their most up-to-date face-to-face assembly was final June, Modi and Musk have identified one another for greater than a decade.

The Indian prime minister toured Tesla’s Fremont, California, facility in September 2015. Musk after which chief expertise officer JB Straubel confirmed Modi and his entourage across the facility and confirmed off Tesla’s lithium-ion battery packs, according to videos posted online. Musk and Modi additionally mentioned how batteries and photo voltaic panels may assist generate electrical energy in India’s rural areas.

Final 12 months, Musk admitted that he was a “fan of Modi” and that he was “extremely enthusiastic about the way forward for India.” A few month earlier than his assembly with Modi, the Tesla CEO had mentioned his firm would decide a location. for a brand new Tesla manufacturing unit by the top of 2024 and expressed interest in India.

“I’m assured that Tesla will be in India and will achieve this as quickly as humanly potential,” Musk told reporters last June.

A poor first-quarter and extra guarantees

The assembly with Modi is anticipated to happen through the week of the twenty second, in accordance to Reuters. On that Tuesday, April 23, Tesla will report its full first-quarter earnings after the bell.

The EV maker has already reported its deliveries for the January to March interval, revealing a disappointing quarter that one analyst named a “nightmare.”

The automaker mentioned it delivered 386,810 electric vehicles over the primary three months of 2024. That fell wildly in need of Wall Avenue’s expectations and raised new doubts from buyers, with Deutsche Financial institution analysts noting that the disparity between automobiles bought and automobiles made confirms that “there may be a severe demand problem.” Wells Fargo analyst Colin Langan has additionally known as Tesla a “growth company with no growth.”

Tesla buyers are hoping for lots of recent info to be revealed by the earnings report and Tesla’s earnings name scheduled for later that day.

After denying a report that Tesla would cancel its plans for a $25,000 EV, Musk promised buyers {that a} self-driving robotaxi could be unveiled on Aug. 8, though there are a several reasons that analysts and investors are skeptical. The corporate can be anticipated to face questions associated to its settlement of a lawsuit with the household of a diver who died in a 2018 crash involving using Tesla’s driver assistance program, Autopilot.

Tesla can be facing its latest lawsuit over labor rights violations from former staff on the Fremont facility, which has been accused of being a hotbed of racist and sexist harassment. Two ex-Tesla staff accused the corporate of failing to compensate staff for additional time, sick pay, trip pay, and meal and relaxation breaks, in addition to failing to present written descriptions of necessary quotas.

If Musk can present some excellent news for buyers — particularly associated to India — it might assist give Tesla’s inventory a much-needed increase. Tesla shares are down virtually 1% in buying and selling Thursday and have shed greater than 31% this 12 months, making it the worst performer within the S&P 500.