Two reasons why Elon Musk routed Tesla’s India venture via Amsterdam
Navdeep YadavJan 18, 2021, 18:22 IST
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According to an Economic Times report, Tesla Motors and Energy, India incorporation document says that the Tesla Motors Amsterdam is the parent of the Indian subsidiary and not the US arm.
The billionaire and the owner of Tesla,
Elon Musk, has chosen the tax-friendly jurisdiction of the Netherlands to route its India investment.
Sridhar Ramachandran, a tax partner at Grant Thornton Bharat, told Business Insider this route would help Tesla with tax benefits related to capital gains and dividend payments. Billionaire and the owner of Tesla, Elon Musk, has chosen the tax-friendly jurisdiction of the Netherlands to route its India investment. According to an
Last week the Elon Musk-founded company,
Tesla India Motors and Energy Private Limited, made its entry into India, with its office on Lavelle Road, Bengaluru. Tesla’s office is the same address as where fugitive diamantaire Nirav Modi’s
jewellery boutique store once stood.
Lavelle Road, and the city’s Central Business District (
CBD), have been a coveted address for many iconic automobile and motorcycle brands like
Ducati,
Lamborghini and
Harley Davidson. But very quickly, these brands have either shut shop or moved to new locations. Will Tesla be jinxed by its address?
Rahul Arora, Managing Director, Bengaluru, Head, Markets, Jones Lang Laselle, a global real estate services firm specialising in commercial property, disagrees. “Tesla is opening an engineering centre, they are not opening a showroom to sell cars. Ducati and Lamborghini had showrooms. Not all international automobile showrooms that have opened in the CBD have shut down. The
Recently, there were reports that Tesla is officially entering the Indian market by registering a company in Bangalore. Now, Tesla CEO, Elon Musk, has said that he will fulfill his promise to let his electric cars drive on Indian roads. According to reports, Tesla has registered and established a company called “Tesla India Automotive and Energy Private Limited ” in Bangalore, India on January 8.
For a long time, Tesla has been trying to enter the Indian market. However, due to lack of infrastructure, policies, and the market, these attempts have failed. In the past few months, there have been more rumors about Tesla seeking to establish a production or R&D center in India.
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