2 weeks Ago
Electric Vehicle manufacturer Tesla Inc. believes India is a "hard market" but a "great one to enter." The company made these statements during its post-earnings conference call with analysts.
When quizzed about the company's geographical expansion plans, Tesla CFO Vaibhav Taneja said that the company is currently working on getting into the Indian market. However, he emphasized the complexities involved, particularly the high import tariffs that currently make Tesla vehicles prohibitively expensive for many Indian buyers. “Any car which we send in is subject to a 70% tariff, plus about a 30% luxury tax,” Taneja explained, adding that this makes the car more expensive than what it already is, thereby creating anxiety among potential customers.
Therefore, Tesla is still trying to figure and work upon what is the right time to enter the Indian markets. "It’s a great it would be a great market to enter because India has a big middle class, which we would want to tap in, and that is the market which we want to be in. But, again, these kind of things create a little bit of tension which we’re trying to work around," the Tesla CFO said.
Tesla's entry into the Indian markets has been a big talking point recently. The company has been spotted testing the updated 2025 Model Y near Mumbai. Additionally, Tesla CEO Elon Musk has engaged in talks with Indian government officials, including Prime Minister Narendra Modi, signalling mutual interest in collaboration and potential local manufacturing in the longer term.
Musk also plans on visiting India later this year. Tesla's results were below expectations on all Wall Street parameters. However, the stock rallied in extended trading as CEO Elon Musk said that the time he devotes to DOGE will be lesser starting May and he will focus more on his business.
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