To which country does Tesla outsource the production of electric vehicles?

“We are still facing a lot of challenges with the government,” Tesla CEO Ilan Musk said in response to a question about Tesla’s business plans in India. The CEO of Tesla wants to reduce import tariffs before the supply of cars in India.

India has a 100% import tariff for cars above $ 40,000 and an import tariff for cars below 60%. Tesla is priced at around $ 39,900 for its cheapest car, and top models are priced at more than $ 70,000.

Until the Indian federal government cuts Tesla’s taxes, the company’s low-cost model will cost at least Rs 5 million ($ 68,493) upon arrival in India, placing it in a special section for luxury cars.

India’s Transport Minister Nitin Gadkari said Tesla intends to start selling and then explore assembly and production in the country.

According to analysts, the Indian states are eager to invite Tesla because the presence of the world’s most valuable car company will brighten their image as a business destination, as well as create jobs.

Last September, India announced incentives related to the production of electric vehicles, including financial incentives such as tax breaks and cheaper rents and discounted electricity costs related to production volume.

There will be a lot of demand for electric cars in India in the future because the products that are weird today will become very popular.