The real-life Iron Man, Elon Musk who heads Tesla Motors gave a hint of its entry into car manufacturing unit in India last year through Twitter.
Tesla, the name adopted from the legendary genius 'Nikola Tesla', is ready to write another page of legacy and it starts from India this time. Aiming to make India the global hub of EVs in 5 years, Tesla India Motors will lay the foundation of it.
Since Union Minister Nitin Gadkari announced Tesla's inception on Indian shores in early 2021, the hype of Tesla-lovers has crossed all barriers. The decision will meet the likes of conservation of fuel and the initiation of electric vehicles to meet the energy requirement.
What is Tesla?
Tesla is an American company founded in 2003 by Martin Eberhard and Marc Tarpenning while Elon Musk being the chief investor to its CEO in 2008. Tesla produces and sells electric vehicles and energy generation products. By 2020, Tesla's market capitalization reached $206 billion. Unlike others, 2020 was a boon for Tesla as the net income rose 146% year-over-year, the major coming from China and the US.
Status of Tesla worldwide:
Tesla produces 'futuristic' electric-cars including self-driving technology which is diminishing the taboos of electric cars being slow and requires frequent charge. Tesla's Roadster can accelerate from 0 to 60 mph in 1.9 seconds and Tesla's claims of it achieving 250 mph speed, if proven will make it the fastest car in the world. Yearly Owner Satisfaction Survey resulted in 91% of owners depicting to buy a Tesla car if they have to do it all over again.
Tesla’s polarizing stocks made the 'bull-run' in early January this year reaching 7.84% with $880.02 which helped its market capitalization cross $800 billion and contributed Elon Musk to be the richest man on the planet. Tesla's demand can be projected by its 4,99,550-vehicle sold in 2020.
The world is having a natural crisis and fuel is the leader of it. Thus, making cars that hate petrol will save petrol and Tesla is leaping mankind through this.
How is the car so efficient?
With zero emissions, Tesla cars are the future of healthy traveling. The consistent software updates in the car help to convert any Tesla car to the latest technological demands in 24 hours. This won't change the hardware but its 'brains' can be made better.
Tesla gives high-end competition to other gasoline cars in terms of speed, technology, and comfort.
The models of Tesla launched to date are:
Tesla X
Tesla Y
Tesla S
Tesla 3
Tesla Roadster
Tesla Cybertruck
The most popular Tesla out of all is the 'Model 3' which costs nearly $35,000.
Tesla India Motors and Energy Private Limited formed on 8th January 2021, is the name filed at the Registrar of Companies (RoC) for the newly-setup Tesla subsidiary in Bangalore with Rs 15 lakh authorized capital and additional Rs 1 lakh paid-up capital. The operation will be started by constructing an R&D (Research and Development) center in Bangalore which is a hub for multi-dimensional technological companies. Tesla will initially sell Completely Built-Up (CBU) products and depending upon the demand, it will soon operate a plant in the upcoming months.
Tesla 'Model 3' will be 'its first product' in India seeing its popularity. The car will cost around Rs 60 lakh nearly double what it is priced due to the high import taxes in India and of it being available as a CBU.
The three directors appointed for the firm are Vaibhav Taneja (CAO), Vankatrangam Sreeram (Entrepreneur), and David Jon Feinstein (Technical Recruiter) from the US.
Advantages to the country and influence on the automobile sectors:
Tesla contributes to a better planet supply and India expects the same. Indian cities contribute more to air pollution and Tesla will eradicate thus paving way for a greener environment in the future. Considering the work-force, India will take 5 years to become a Global EV manufacturing hub.
The question arises whether there would be a manufacturing plant or a collaboration with an existing professional like Mahindra Electric and considering the latter will help conserve the dream of PM Narendra Modi of ‘domestic manufacturing’.
Automobile sectors operating in India participating in the game of EV like Morris Garages, Tata Motors, and Mercedes can collaborate with Tesla considering technology, work-driven force, and supplies, increasing demands of 'healthy-driving'.
Advantages to India through Lithium Ion:
EVs backbone stands at the batteries installed in them. As per the cost, Li-ion batteries constitute 45% cost of an EV i.e., nearly half the price. The demand for Li-ion batteries will allow its manufacturing in India and by 2025 it will hold a share of 25% of total Li-ion batteries produced in the world. The future is 're' whether to recycle, recharge or reuse, and the production of EVs will bolster the demand for Li-ion batteries.
Challenges Tesla will have to face:
• The budget by the country's Finance Minister Nirmala Sitharaman pointed out that there is no leverage for EVs as custom duty has been hiked from 10% to 15%.
• It affects the electrical vehicle segment as they need supplies of spare parts like brake, frame, crank gears and components like batteries and electricals.
• Budget scripts the demand for 'domestic production' and Tesla will have to go for the inauguration of their plant in India to escape the custom duties.
Benefits India can have through Tesla:
• A 15,000 people survey resulted in 80.5% of them in favor of Tesla to be listed as a stock. Tesla's stocks have surged 700% last year and Indians can't wait to see them on the BSE forum and run the real trade.
• Indian Start-up Pravaig Dynamics makes EVs and is soon to launch its first model Pravaig Extinction Mk1 known to match the likes of Tesla. Collaboration between both the companies can make India the most advanced EV producing country and a layer of sugar to the economy.
• Industries relating to the automobile will experience a relative hike in job opportunities.
• Domestic production proportionates to higher demands and greater export compared to imports.
• India is emphasizing totally on EV-centric ecosystem by 2030 and Tesla might just be the 'kickstart' for them.
Tesla will have to cross certain barriers to market itself in India's economy as India's budget acts as a resilience but seeing the stand-value of Tesla, India, and Elon Musk if work mutually can make a fortune.
As Wall Street suggests 'Investment in Tesla is like investing in the time, it will always bring meaningful rewards'.
See you at the next blog.
This content piece is prepared by Nilesh.
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