Reportedly, Tesla TSLA intends to establish a battery storage production plant along with a potential electric vehicle (EV) production plant in India.
Tesla has submitted a proposal to Indian officials to seek incentives to set up a battery storage factory. Currently, the automaker is discussing its plans to build a new EV factory in India that would produce a car priced around $24,000.
Elon Musk, CEO of Tesla, believes that the company and the Indian government will resolve the issue concerning import duties to let the company gauge demand by importing cars from other countries. The import duties discourage customers by excessively marking up the prices of cars.
Tesla is contemplating building a battery storage production plant in India. The EV king proposed a plan to support India’s battery storage capabilities with Powerwall, a system that stores excess power from solar panels. The power can then be utilized during the night or power outages.
Per sources, the Indian government wants to help create a fair business model for Tesla by offering subsidies to customers buying these products.
Both parties are currently reviewing the proposal and seem interested in the idea, but the realization of the plan is uncertain.
India has increased power supply to towns and villages but faces peak-time shortages amid growing demand. The country is dependent on coal-based power generation as other technologies are quite expensive.
The country has decided to increase its non-fossil fuel energy capacity to 500 GW by 2030, up from the existing 186 GW.
During a 2015 visit to Tesla’s California campus, Narendra Modi, the prime minister of India, seemed extremely interested in Powerwall, especially in how the application could benefit farmers.
Per sources, Indian officials want Tesla to work on reducing the prices of its battery storage products, adding that the government could help the company unlock market demand.
In California, Powerwall costs more than $5,500 with incentives, excluding the cost of solar panels. It is eligible for U.S. federal tax credits.
Tesla launched a new version of the Powerwall recently. Its latest version helps avoid outages and keeps the lights on longer.
Zacks Rank & Key Picks
TSLA currently carries a Zacks Rank #2 (Buy).
Some other top-ranked players in the auto space include Li Auto Inc. LI, Gentex Corporation GNTX and Allison Transmission Holdings, Inc. ALSN, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LI’s 2023 sales and earnings implies year-over-year growth of 154.7% and 9,200%, respectively. The EPS estimates for 2023 and 2024 have moved north by 33 cents and 68 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for GNTX’s 2023 sales and earnings indicates year-over-year rises of 17.3% and 29.4%, respectively. The EPS estimates for 2023 and 2024 have moved up by 9 cents each in the past 60 days.
The Zacks Consensus Estimate for ALSN’s 2023 sales and earnings suggests year-over-year increases of 9.3% and 24.2%, respectively.
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