Please ensure Javascript is enabled for purposes of website accessibility

Tesla Takes Its Next Step Toward World Domination

By Danny Vena - Mar 3, 2021 at 9:00AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A set of regulatory filings in another country shines a light on the electric vehicle maker's next steps.

When it comes to electric vehicles (EVs), no one holds a candle to Tesla (TSLA 4.53%). Over the past decade, the company has become the world's dominant EV maker and shows no signs of slowing. The recent discovery of documents in the world's second-most populous country shows that Tesla has plans to continue its reign.

On this clip from Motley Fool Live, recorded on Feb. 16, "The Wrap" host Jason Hall and contributor Danny Vena discuss the most recent revelation and what it means for Tesla shareholders.

Jason Hall: Danny, let's go ahead and talk about what's going on here with Tesla.

Danny Vena: It seems like every day there's a new headline about Tesla or about Elon Musk, which always gives me a little bit of something to share with folks that may or may not yet be invested in Tesla. If you believe like I do that the electric vehicle market is going to be much larger going forward, right now, Tesla is the biggest game in town.

I saw a note here that said that Tesla is going to begin manufacturing electric vehicles in India. Now, this is something that Musk has talked about for some time now. He's had a couple of tweets where he said, "Yeah, next year for sure." Then he linked a tweet to a blog that talked about electric vehicles being set up in India. His response was "as promised."

Now, they've found some other evidence, apparently there were some government documents from the Indian state of Karnataka in the city of Bengaluru, and I hope I'm pronouncing that correctly. But essentially what has happened, there has been a couple of regulatory filings where Tesla has incorporated to fully owned subsidiaries by Energy Private Limited and Tesla Motors India.

In addition to that, in a statement that the government put out, a government document that talks about India's budget and how it's going to benefit that particular local population. The text read, "The U.S. firm Tesla will be opening an electric car manufacturing unit in Karnataka."

I think from an investing standpoint that's important because if you look at what Tesla is doing by setting up a manufacturing and production facility in a country that has a lower per capita income, they're going to be able to produce those cars at a much lower price. In so doing, I think that's going to make them much more attractive to potential electric vehicle buyers in India. They could also potentially export those and export them at a lower cost than what they can produce them elsewhere. I think this is a big deal for Tesla. It's just the next step in Tesla's ongoing mission to dominate the planet with electric vehicles.

Hall: Yeah. They are going to have to spend a lot of capital in a lot of places to live up to expectations. There's no doubt about that. Danny, thanks for sharing. That's cool. Because it's one of those things that's a reminder, SEC filings are great and reading articles, it's helpful. Sometimes you have to find people that go to really extreme lengths, to find documents to help explain what companies might or might not be doing. That's fun, Danny. Thanks for that.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
$737.12 (4.53%) $31.91

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.