What Is India's Prime Minister Doing At A Tesla Factory?
- India’s Prime Minister Narendra Modi will visit Tesla Motors Inc (NASDAQ: TSLA)’s factory in Fremont, California sometime at the end of this week.
- Shares of Tesla rose 1.37 percent on Monday.
- Trip Chowdhry, Managing Director at Global Equities Research, shared a comprehensive view of the visit.
News came out that India’s Prime Minister Narendra Modi will visit Tesla’s factory in Fremont, California between September 26 and September 27. Below are some key takeaways from this event, according to Global Equities Research:
- Modi has set the objective of boosting India’s solar power generating capacity from the current 4GW, to 100GW by 2022. The project will produce more than $100 billion of investments.
- India already has the technology needed for the production of solar panels, but needs Tesla’s help with storage batteries.
- The firm expects Modi to recur to Tesla for “help with Utility Grade and Commercial Grade Stationary Batteries.”
- Rumor has it that Elon Musk has changed his plans to be in Freemont for Modi’s visit. The Prime Minister will allegedly meet with Musk, JB Straubel and other members from Tesla Energy’s management team. Some expect Musk to take Modi on a test drive on a Model S.
- “PM Modi may invite Tesla to initially open 4 to 5 Tesla Dealerships in India,” Chowdhry said. “Our research indicates that Tesla could easily initially sell between 10,000 to 12,000 Model S a year in India."
Global Equities Research maintains a 12-18 month price target of $385 on Tesla.
Disclosure: The author holds no stakes in any of the securities mentioned above.
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