The newsletters and the internet these last two days are experiencing an overload of posts regarding the billionaire, Tesla, and SpaceX owner, Elon Musk.
The breaking news is regarding his hold on the Twitter deal. However, that is not the only thing that Elon has on hold at the moment.
Twitter Deal Is Not The Only Thing On Pause For Elon Musk – The Launch Of The Tesla Factory In India On Hold
He is struggling with the numbers and percentages of fake accounts on Twitter these days. But, parallelly he is in a process of launching a Tesla Factory in Bengaluru, Karnataka, India. On paper, this deal did sound very promising and profitable for Elon. But in reality, it reveals itself to be a little different than imagined.
Allegedly, the company has ceased its search for showroom space and reassigned some of the Indian teams. This is announcing a break in the process. Break due to a failure to agree on import taxes with the country.
Elon firstly did try the market and started selling electric cars that he imports from other countries. However, Indian representatives are pushing him to manufacture the cars completely in India, so they can lower the taxes. For your information, the tax in India for importing products can reach up to 100%.
So if the Tesla Model S, starts for a price of $95 000 in India, you’d be able to get it for more than $180 000. And who would pay double for a car? Nobody.
Elon Musk is waiting for some kind of agreement from the Indian government regarding the taxes since February. However, until now they are short of offers for the billionaire.
This results in a stoppage of the search for showrooms all over India. Additionally it results in reconsidering of the initial investment plan that Elon had for the region. There is no confirmation from Tesla officially for the reassigning of the team. However, the LinkedIn profile of Tesla’s Indian Policy Executive indicates it. It can be clearly seen that Manuj Khurana now has a new role in the company. But in San Francisco.
Elon is not quiet about these ‘challenges’ that he has with the Indian government. Since January, he constantly releases statements that he has had difficulties in the talks with the officials.
The Indian government is not interested in having a giant such as Tesla in the country if they are planning to import vehicles from elsewhere. They made it clear to the billionaire that they do want their investments, but more importantly they need jobs. And the best way to attract as many available jobs as possible is by opening a regular plant for building vehicles there.
The government is completely sure that it can accomplish this. This is not their first car manufacturer to go there. Mercedes Benz will start manufacturing and completely assembling electric vehicles in India in the following period. They have success with the Germans. They did attract European money, and now the only thing missing is a major American investment such as Tesla.
Will they be able to win the negotiations and attract the billionaire?
https://www.youtube.com/watch?v=m6ViZW5wkYc
