Electric vehicle major Tesla (NASDAQ:TSLA) is set to receive incentives worth $153 million for its new facility in Mexico from Nuevo Leon, according to Bloomberg.
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These incentives are aimed at setting up infrastructure, such as roads and water facilities, and a decrease in payroll tax. This decision from Nuevo Leon’s authorities comes amid concerns regarding persistent delays in the construction of the plant. Earlier, Tesla CEO Elon Musk had sought an improvement in basic infrastructure in the region before commencing construction.
The plant has witnessed delays despite state authorities agreeing to Musk’s request. According to Reuters, the total incentives are worth nearly 3.37% of Tesla’s investment in the North Mexican state.
In another development, Musk is also seeking lower import duties before investing up to $2 billion in a plant in India. Amid rising concerns over its autopilot system, Tesla plans to roll out an over-the-air update for nearly 2.03 million vehicles.
What is a Fair Price for Tesla Stock?
Shares of the company have rallied nearly 60% over the past year. In the meantime, the Street has a Hold consensus rating on Tesla, and the average TSLA price target of $246.39 implies the stock may be near its fair value.
