Tesla Faces Potential Setback as India Considers High Tax on Luxury Electric Vehicles

Tax Increase Proposal: A tax panel in India has recommended raising the Goods and Services Tax (GST) on high-end electric vehicles, proposing an increase to 18% for vehicles priced between $23,000 and $46,000, and 28% for those above $46,000, which could impact sales for foreign automakers like Tesla and BMW.

Market Impact: The proposed tax changes come as the Indian government aims to promote domestic products amid strained trade relations with the US, potentially affecting both local and foreign electric vehicle manufacturers, with Tesla already experiencing lower-than-expected orders since its market entry.