Elon Musk is ready to invest, but there is one condition

Elon Musk is ready to invest, but there is one condition

Elon Musk

Tesla is reportedly ready to expand operations further, but it expects its investment to come with concessions from the interested party.

The Economic Times reported on Nov. 24 that the Elon Musk–led automaker has greenlit a $2 billion factory in India on the condition that the country reduces import duty on 30,000 vehicles to 15% over the first two years, as detailed by Reuters.

Musk is open to investing $500 million if 12,000 vehicles receive tax cuts instead, which reportedly may be more in line with the government’s desires.

India had already been considering a policy to cut import taxes on electric vehicles to 15%, as Reuters reported in August, with its eye on bringing manufacturing jobs to its domestic market.

“There is an understanding with Tesla’s proposal and government is showing interest,” a government official told the outlet this summer.

Cars retailing for more than $40,000 are taxed at 100% under current regulations. While the prices of Tesla EVs fluctuate, most of the automaker’s vehicles are well above that $40,000 mark, with the popular Model Y listed at $48,990 on the company’s website.

EVs, which don’t release any pollution from their tailpipes, are getting more affordable as major automakers put resources toward their development and new competition enters the market.

Incentives aimed at reducing carbon pollution have also played a role as governments look to phase out dirty energy — a main factor in the dangerous overheating of our planet linked to extreme weather events.

Tesla and government officials have not yet responded to Reuters’ request for comment, but the Economic Times notes that there are four departments assessing the terms of the deal in coordination with the prime minister’s office.

These include the Department for Promotion of Industry and Internal Trade; the Ministry of Heavy Industries; the Ministry of Road Transport and Highways; and the Ministry of Finance.

“Wherever Tesla sets up a base, it does so with its entire supplier base. So, the investments are significant,” one official told the Economic Times after initial talks.

However, sources added that “discussions were ongoing, and details could change.”

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