Author: Staff Writer

Intel stock jumped over 5% in after-hours trading on Monday, August 18,  after Japanese technology giant SoftBank announced a $2 billion investment in the U.S. chipmaker. The deal, struck at $23 per share, comes at a time when Washington is weighing a potential direct stake in Intel to secure America’s semiconductor supply chain.

SoftBank Chairman Masayoshi Son considers this step in business as a long-term bet on U.S. chip manufacturing, calling it a “strategic investment” that reinforces Intel’s role in next-generation semiconductors and AI hardware. The Japanese group, which has already expanded its U.S. presence with plans for AI data centers in Ohio, is signaling confidence in Intel’s turnaround under new CEO Lip-Bu Tan.

Intel has been under pressure in recent years, ceding market leadership to rivals Nvidia, TSMC, and Samsung. Tan has launched aggressive restructuring, cutting jobs, exiting its automotive unit, and slimming down its foundry operations, to sharpen focus on core clients and data center chips.

The investment also comes against a charged political backdrop. Reports last week suggested the Trump administration could convert government grants into a roughly 10% equity stake in Intel, though officials have stopped short of confirming any deal. The move, if approved, would mark a rare government intervention in a major U.S. corporation and signal Washington’s determination to anchor chipmaking capacity domestically.

Trump has publicly pressured Intel’s leadership, even calling for Tan’s resignation over alleged conflicts tied to China. Despite the rhetoric, the White House has held talks with the CEO on Intel’s role in building out a flagship semiconductor hub in Ohio.

Market analysts say the twin tracks of SoftBank’s capital injection and possible U.S. equity participation are reshaping sentiment around Intel. "[The Government's] agenda is clear: Accelerate domestic production, reduce dependence on Asia, and position Intel at the centre of the AI and national security landscape. This is a clear vote of confidence in Intel’s turnaround story,” said Dan Sheehan of Telos Wealth Advisors. “The U.S. agenda is clear: accelerate domestic production, reduce reliance on Asia, and position Intel at the heart of the AI and national security ecosystem.”

For investors, the developments suggest Intel could regain momentum not only as a technology player but also as a strategic asset in America’s industrial policy. With shares trading close to the SoftBank deal price and political support growing, the company may be positioned for a stronger rerating if execution on restructuring and U.S. government backing align.

Reliance Power, led by Anil Ambani, has taken another step toward clean energy by setting up a joint venture with Bhutan’s state-owned Green Digital Private Limited. The new entity, GDL–Reliance Solar Pte Ltd (GRSPL), was formally incorporated on July 24, 2025, under Bhutan’s Gelephu Mindfulness City, a Special Administrative Region envisioned as a hub for sustainability and innovation.

The venture is built on equal footing, with Reliance Enterprises Private Limited (a Reliance Power arm) and Green Digital each holding 50%. As part of the deal, Reliance subscribed to 2.25 lakh shares at $100 apiece, giving it an indirect 25% stake in GRSPL. While operations are yet to begin, the company will focus on renewable energy projects, aligning with Reliance Group’s larger strategy of diversifying into clean energy and defense.

Importantly, the JV does not fall under related party transactions, despite Reliance Infrastructure, Reliance Power’s promoter, holding an indirect 25% stake through REPL.

On the market side, Reliance Power shares closed at ₹43.27 on Monday, valuing the company at ₹17,895 crore. Investors are expected to closely monitor when GRSPL begins operations, as this could significantly impact sentiment around the stock.

Financially, Reliance Power has been showing signs of revival. The company reported a net profit of ₹125.6 crore in the March 2025 quarter, a sharp turnaround from a ₹397.6 crore loss a year earlier. Though revenue slipped marginally by 1% to ₹1,978 crore, operating performance improved dramatically, EBITDA surged over 11 times to ₹589.8 crore, lifting margins from 2.4% to 29.8%.

The tie-up with Bhutan not only strengthens Reliance Power’s renewable energy portfolio but also underscores the growing role of cross-border collaborations in meeting global sustainability goals. For investors, the venture signals long-term ambition, even as the immediate focus remains on execution.

Tesla’s road to India won't be easy.

The Elon Musk-led electric vehicle (EV) giant has sparked fresh speculation about its entry into the country through a series of new recruitments.

But scaling up in the Indian market will require much more than just setting up shop—it hinges on local manufacturing and a competitive pricing strategy, according to a note by CLSA.

The brokerage firm pointed out that the price gap between Tesla’s global offerings and the Indian market remains a critical barrier.

The average selling price of cars in India stands at $14,000 (Rs 12.13 lakh), while Tesla’s most affordable model in the U.S. is priced at $35,000 (Rs 30.3 lakh). To make inroads, Tesla would need to price its vehicles at less than Rs 25-30 lakh, CLSA noted. Adding to the complexity, India’s EV penetration is estimated at just 2.4%, significantly lower than Tesla’s key markets—30% in China and 9.5% in the U.S. The Indian market’s relative underdevelopment presents both a challenge and an opportunity for Tesla, should it successfully address affordability and localization concerns.

A major roadblock is India’s steep import duties. Vehicles priced under $40,000 attract a 60% duty, while those above $40,000 face a 110% duty, including agricultural cess. Even if these duties are reduced to sub-20% levels, Tesla would still need to establish local manufacturing to make its cars viable. “We believe Tesla would need to establish manufacturing in India to scale up with its current portfolio and price its vehicles at less than Rs 3.5-4 million (Rs 35-40 lakh) on-road,” CLSA stated. Despite the buzz around Tesla’s entry, CLSA does not anticipate a major disruption to India’s leading automakers. Maruti Suzuki India, Hyundai Motors India, and Tata Motors are unlikely to be significantly impacted, given the low EV penetration and Tesla’s expected pricing. If Tesla introduces the Model 3 at an on-road price 20-50% higher than upcoming domestic models like Mahindra XUV 9e, Hyundai e-Creta, and Maruti e-Vitara, its market impact will be limited, the brokerage noted.

Furthermore, Tesla’s push for a $25,000 (Rs 21.6 lakh) EV would require significant compromises on features and specifications. Indian automakers, which already offer competitive pricing with feature-rich models, are well-positioned to maintain their stronghold. Even if the Indian government revises import duties to 15-20%, Tesla’s pricing would remain higher than most long-range electric SUVs from domestic players.

Tesla officials are set to visit India in April to review the company’s operations and engage with key government departments, including the Prime Minister’s Office (PMO), the Ministry of Heavy Industries, the Ministry of Road Transport and Highways (MoRTH), and the Ministry of Commerce, according to sources.

Tesla has identified Maharashtra’s Chakan and Sambhaji Nagar, as well as Gujarat, as preferred locations for its manufacturing hub. The company is expected to make an initial investment of $3-5 billion to establish its production facilities, the source added.

To take advantage of lower import duties and government incentives, Tesla will have to apply for the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI). The policy, notified on March 15, 2024, is aimed at boosting local EV production.

Under this scheme, manufacturers are required to:

• Invest a minimum of Rs 4,150 crore in India
• Achieve at least 25% domestic value addition (DVA) by the third year
• Increase DVA to 50% by the fifth year

“If Tesla wants to benefit from the lower import duties, it will have to commit to manufacturing in India and invest in the local supply chain,” another source said.

In 2023, Tesla executives engaged with the Modi administration to discuss local component sourcing, leading to the company securing office space in Pune. Subsequent meetings between Elon Musk and Prime Minister Modi further fueled speculation about Tesla’s entry into India.

In 2024, India introduced a revised EV policy that offers import duty concessions to manufacturers committing at least $500 million in local investments. Musk was initially expected to announce Tesla’s investment plans during his scheduled April 2024 visit to India. However, he canceled the trip due to urgent business matters and instead traveled to China.

While India’s EV market remains relatively small compared to China — where 11 million electric cars were sold last year — it is gradually expanding. In contrast, India’s EV sales stood at nearly 100,000 units during the same period. Despite this gap, Tesla views India as a high-potential market, given the government’s push for clean energy and incentives to accelerate EV adoption.