15 April 2024 – According to a report by the Economic Times, which cited individuals close to the transaction, US-based electric car company Tesla has secured a significant contract with Tata Electronics to purchase semiconductor chips for its worldwide operations. The agreement’s details and value are unknown since neither of the two corporations has issued a statement.
This action could be a component of Tesla’s larger plan to diversify its suppliers and increase its footprint in India. According to the article, Tata Electronics, the company spearheading the Tata Group’s foray into semiconductor production, has expanded its personnel by hiring executive-level staff. Tata Electronics has spent $14 billion in the company to date and has built semiconductor production facilities in Hosur, Dholera, and Assam. The company wanted to expand operations.
Conclusion
It is anticipated that Tesla will spend two to three billion dollars to establish electric car manufacturing facilities in India. Recent modifications to import tariff laws may make it easier for Tesla to continue its original strategy of importing high-end electric vehicles while simultaneously organising local manufacturing.