Elon Musk’s Tesla plans to invest up to $2 billion in India’s plant, but has THIS condition

Tesla is willing to invest up to $2 billion in India to set up a factory there if the government reduces import duty on its vehicles to 15% for the first two years of operation, the Economic Times reported on Friday.

As reported by Reuters, India is working on a new EV policy that will reduce import taxes to as low as 15% – compared to the present 100% on cars priced over $40,000 and 70% on the rest – in exchange for a commitment to some local manufacturing.

The Elon Musk-led electric vehicle (EV) maker is set to invest up to $500 million if the government accepts the reduced duty for 12,000 vehicles and up to $2 billion if the concession is for 30,000 vehicles, the ET report stated, citing unnamed sources.

According to the Economic Times, the government is examining the viability of Tesla’s proposal to invest $2 billion, but wants to reduce the number of cars imported on a lower duty, compared to Tesla’s proposal.

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