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Tesla is planning to expand its operations in Asia’s second-largest economy and has already registered an office in India. The company is likely to start manufacturing its cars already in 2021.
After an 8% correction on Monday, Tesla Inc (NASDAQ: TSLA) stock bounced back on Tuesday rising nearly 5%. On Tuesday’s closing hours, the TSLA stock was 4.72% up trading at a price of $849 with its market going back above $800 billion. All this happened amid teh talks on the expansion of Tesla to India. Today in the pre-market, the stock is 0.35% down.
Tesla is initiating a series of measures for its global expansion. One of its biggest moves scheduled in 2021 is its entry into India. On Tuesday, Tesla registered its Indian entity “Tesla India Motors And Energy Private Limited” in India tech-hub Bengaluru, Karnataka. The company has currently appointed three directors – David Jon Feinstein, Vaibhav Taneja and Venkatrangam Sreeram, reports Economic Times.
Details of Tesla Plans to Expand to India
Tesla is still looking for its manufacturing facility and is currently in talks with the governments of five different states. The Bangaluru office will be Tesla’s R&D division for the region. Reportedly, Tesla is in talks with Indian automaker Tata Motors in a deal of contract manufacturing of Tesla vehicles. Tata Motors owns some of the biggest and prestigious international brands like Jaguar and Land Rover.
India’s local news publication TOI wrote:
“Tesla has been searching for an Indian manufacturing partner and settled on Tata after its due diligence process concluded that the Indian company had the best electric-vehicle infrastructure among the country’s major automakers. Tata’s Nexon EV is India’s best-selling electric vehicle”.
Tesla’s Chinese Rival NIO’s New Sedan Fails to Impress
Another reason behind Tesla’s rally on Tuesday was that the new sedan introduction by its Chinese rival NIO failed to impress analysts. NIO unveiled its first sedan model ET7 which is likely to hit the streets by 2022. Citi analyst Jeff Chun said that it is “good but not enough to make any critical changes from Tesla’s challenge”.
The NIO ET7 goes on to copy the Tesla Model S in terms of design. The Citi analyst said that a potential design overhaul would rather help it get a distinct recognition.
Having gained unprecedented growth in valuations, Tesla is now making moves to expand its market share. Although it is the largest automobile company, its rivals still manage to sell more cars. Thus, the next big mission for Tesla is to expand its production and bring more fleets of cars into the market. Tesla is also working on its new gigafactory in Germany to scale European operations.