Tesla officially gained a business license in India, which will enable the automaker to operate in the country as a domestic automaker — as a subsidiary of a foreign (U.S.) company, according to the Ministry of Corporate Affairs (MCA) in India.
Tesla receives business license in India, stock soars 6 percent
Tesla India Motors and Energy will be based in Karnataka — an Indian state situated in the southwest region of the subcontinental nation. The company was added to the MCA database as an LLP on Jan. 8 of 2021, with the Indian Government allocating physical space for Tesla's early operations in the country.
UPDATE Jan. 12, 12:50 PM EST: Tesla's previous applications for business license succeeded
As of late December 2020, Tesla had already applied for several business licenses, and this latest development suggests its requests to do business in India were granted.
BREAKING : @Tesla has been incorporated in Karnataka, India on January 8, 2021 as "TESLA INDIA MOTORS AND ENERGY PRIVATE LIMITED"🇮🇳.— Tesla Club India® #TeslaIndia🇮🇳 (@TeslaClubIN) January 12, 2021
Company also lists 3 Directors for India.
Welcome @elonmusk , we are waiting for official launch⚡#TeslaIndia🇮🇳 #TCIN pic.twitter.com/a5mMY5P84s
UPDATE Jan. 12, 1:04 PM EST: Tesla names three directors of Indian subsidiary
In addition to the newest developments, Tesla also named three directors for its forthcoming Indian subsidiary — which will be both an electric car and energy storage firm. Present-day Global Senior Director at Tesla David Feinstein is listed as one of them.
The other two directors are Venkatrangam Sreeram — who is currently a director for two car companies, Xenon and ClearQuote, which deals with automated vehicle inspections, Teslarati reports. Then there's Vaibhav Taneja, who is at present Tesla's Chief Accounting Officer.
UPDATE Jan. 12, 1:10 PM EST: Tesla could accelerate solar power development in Karnataka, India
Karnataka, India is a technological hub of the nation — and is home to many renowned science and research centers based in the subcontinental country. Several prominent examples include the Central Power Research Institute and the Indian Space Research Organization.
The Indian state is also one of the densest hubs of solar power in the country — with more than 2.2 gigawatts of solar paneling, and another 1.2 gigawatts confirmed in projects to be installed in the next few years.
Tesla's energy business may accelerate this project, since the company's energy side has handled numerous international projects — including South Australia's Big Battery.
UPDATE Jan. 12, 1:20 PM EST: Tesla's Indian presence to avoid import taxes
This news caused a surge in Tesla stock — which saw a 6% rise — after continual hints of future stakes in India from the company. With the second-largest population in the world, the country of India has a high demand for Tesla's energy products and EVs.
Tesla enthusiasts have waited for the company to come to India as the company tries to work around import taxes by placing a second (or third, or fourth) home in the subcontinental nation.
UPDATE Jan. 12, 1:30 PM EST: Elon Musk made good on statement, Tesla moving into India
Late in 2020, Elon Musk hinted Tesla would establish a presence in India in 2021, which means the CEO has made good on his statement — since local operations in the Indian state will begin shortly, possibly within the coming days.
Tesla has enjoyed one of the greatest success stories in automotive history — both in terms of its electric vehicle rollout and performance, and its ever-rising stock. With a new foothold in India, there's little to doubt about the company's future success.