Tesla is an electric car manufacturing company based in California, US. Tesla started its company in the year 2003. At that time, the name of the company was not the same. Later on, the names of the company got some modification and the company also started manufacturing electric cars. Recently India offered Tesla to establish its business in this country too but even after trying too much, India could not convince TSLA stock to do business in India. There are not just one or two but many reasons behind this.
The very first reason for this is the policy of the Indian government. As per the report, India offered Tesla to do business from its ground only on some conditions. The very first condition was the export duty. In this condition, the Indian government asked Tesla to pay 100 per cent export tax on every single car it’s selling. This if Tesla sells any car in any other country from India for $50,000, after adding tax the cost of the same car would become $100,000.
In the second condition, Indian gov. said that for doing any business from Indian ground, Tesla stock would have to make any partner company from India. No foreign country can start any new business alone from India as per the rule. This also made Tesla change its mind or rethink the offer.
The third and last very important reason behind this was the mandatory condition of getting 40% raw material for manufacturing the electric cars from India only. At present India does not have sufficient materials which could be useful for making any electric cars and that is too within the budget. So due to all these reasons, Tesla had to reject the Indian govt offer to plant a new factory of electric car manufacturing company in India.
It’s a very simple question that if India was having such tough conditions for foreign countries, what was the situation of the foreign countries in China? Are there no such terms and conditions in China? Just like India, China too has some terms and conditions which every new foreign company would have to accept before they enter the Chinese market.
So what was the reason behind this success story of China? The answer is pretty simple. According to the company and situation, China made some changes in its pre-existing rules regarding the foreign trading company. On the other hand, India remained fixed on its condition and without thinking much about it, it easily let go of Tesla on the ground of China. For more information such as releases, you can check at https://www.webull.com/releases/nasdaq-tsla.