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Elon Musk’s India entry with Tesla and Starlink may get easier with Trump’s backing

Elon Musk who has been trying to enter the Indian electric vehicle and broadband markets through his business ventures, Tesla and Starlink, may find it easier to get regulatory support in India with the backing of the newly elected US President Donald Trump.

Over the past few years, Musk has shown interest in launching his businesses in India but has not received adequate policy support. For instance, he had planned to launch Tesla electric vehicles in India a few years back but faced hurdles due to the high import duty. Local players including Tata Motors and Mahindra & Mahindra have been vocal in opposing any relaxation for Tesla.

On the other hand, India has been negotiating with Musk to set up a local manufacturing unit. According to earlier reports, Musk was supposed to visit India in April this year to meet Prime Minister Narendra Modi to make an announcement on plans to invest and open a new factory in the country. The government also lowered import taxes on vehicles from foreign carmakers that pledge to invest in local manufacturing. However, so far a concrete deal has been elusive.

Similarly, Musk is keen to launch his satellite broadband services firm Starlink in India and has been asking for lower entry barriers. Starlink has asked the telecom regulator to charge a nominal fee of just 1 per cent of the annual revenues as spectrum charges. This is being opposed by Reliance Jio as it sees Starlink as a potential threat to the traditional telecom business.

Experts said that now that Musk will probably be part of Trump’s A team, he may be in a better position to negotiate a better deal. “So far Musk was just another businessman from the US. Now with Musk playing a key role in getting Trump re-elected, the equation has changed. Trump is known for his aggressive stance on supporting American businesses so he will back Musk to demand easier regulations from India,” said an industry observer.

“Given the sheer share of effort Elon Musk put into Trump, we can expect a smooth passage for his companies including Tesla to India,” said Llyod Mathias, a business strategist.

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Rupee hits record low as US dollar surges on Trump’s early lead in US election results

Rupee hit an all-time low on Wednesday, November 6, pressured by early results from the US presidential election that strengthened the dollar and weighed on Asian currencies.

The rupee slid to 84.1725 against the US dollar, marking a 0.07% decline from its previous close of 84.1075. It was last seen trading at 84.17. A Reuters report said the dollar index climbed nearly 1.5% to a four-month high of 104.9, while Asian currencies declined by as much as 1.2%.

Early trends from the US election results showed a lead for the Republican candidate Donald Trump, who is widely expected to launch protectionist tariffs and policies if he returns to the White House.

The strength in the dollar is not just squeezing the rupee. Other emerging market currencies are also facing pressure.

The rupee has been one of the safest emerging market currencies this year so far.

The Reserve Bank of India (RBI) has reportedly spent over $10.8 billion from the world’s fourth-largest reserves to defend the currency from election-related volatility.

India has the biggest foreign exchange reserves in Asia after China.

If the US election results in a win for Donald Trump, the market expects a return to protectionism in the world’s largest economy, and it could have a wider impact on all emerging markets, which rely on export revenue from America.

“If they follow through with higher tariffs across the board, and we see continued strength in the dollar, then obviously it is weakness for emerging market currencies. But again, I’m saying that the Indian rupee is very well managed and we may not see the same level of weakness in the rupee as we see in some of the other EM currencies,” Neeraj Gambhir, Head of Markets at Axis Bank, told CNBC-TV18.

The rupee had hit its lowest exchange rate of 84.13 against the US dollar on November 5 before recovering slightly by close. Continued strength in the greenback could push the Indian rupee lower to a new record low today.

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Bitcoin Expected To Hit $80,000 As Crypto Fan Trump Set To Return To White House

As Donald Trump edged closer to victory in the US presidential election, Bitcoin surged to a record high of $75,060, fuelling investors’ excitement in the cryptocurrency sector.

The world’s most valuable digital asset saw 7 per cent growth on Tuesday alone (US time).

Trump made Bitcoin a focal point during his campaign, saying he would make the US the “crypto capital of the world”

Bitcoin hit a new record above $75,000, almost surpassing $1.5 trillion in valuation.

On Wednesday (India time), Bitcoin was hovering around $73,000 per coin.

According to deVere Group CEO Nigel Green, the intersection of politics and cryptocurrency would play a defining role in shaping market trends.

“We’ve said for months that Trump’s stance on cryptocurrency, combined with the uncertainty surrounding the election, would push Bitcoin to new heights,” he said.

“This rally isn’t just about the election; it’s about the fundamental shifts happening in the digital financial system, of which Bitcoin is the leader. People are waking up to the fact that traditional systems are changing,” Green added.

On the campaign trail, Trump vowed to end what he calls the “persecution” of the cryptocurrency industry and to position the United States as the “Bitcoin superpower of the world”.

“Trump’s open support of cryptocurrency has triggered this surge, as many investors anticipate that a Trump victory would clear the path for mainstream adoption and regulation that is both favourable and necessary for Bitcoin’s continued growth,” Green contended.

According to trade analysts, Bitcoin could climb as high as $80,000 in the near future, driven by a combination of heightened demand, market sentiment and policy expectations under a Trump administration.

“Bitcoin at $80,000 is not far-fetched. We are seeing a perfect storm of market dynamics,” Green stated.

Meanwhile, other cryptocurrency tokens also made progress with the total crypto market cap zeroing in on $2.5 trillion, up 9 per cent in just a day.

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Nvidia Surpasses Apple to Become World’s Most-Valued Company At $3.43 Trillion

AI giant Nvidia has become the world’s largest company in the world, surpassing iPhone maker Apple, even as its shares jumped 2.9 per cent on Tuesday raising its market capitalisation (mcap) to $3.43 trillion. Apple’s mcap currently stands at $3.38 trillion.

Another tech giant Microsoft’s market valuation stands at $3.06 trillion.

Known since the 1990s as a designer of processors for videogames, Nvidia has been the biggest beneficiary of the AI boom of late. The artificially intelligence (AI) sector has gained a huge traction especially after the coronavirus pandemic, pushing Nvidia’s shares by 850 per cent since the end of 2022.

Nvidia, which accounts for 7 per cent of the weight of the S&P 500 Index, is responsible for about a quarter of the benchmark’s 21 per cent gain this year, according to Bloomberg.

“Over the past several quarters, it has felt like people basically care about inflation numbers, job numbers, and Nvidia numbers. Nvidia overtaking Apple in market cap not only conveys that it is the biggest beneficiary of the AI infrastructure cycle, but it suggests people expect the AI boom will continue,” said Fall Ainina, director of research at James Investment Research, according to Bloomberg.

Other tech companies are also now focussing on AI, with Apple recently newly launching AI iPhones. Microsoft, Amazon and Alphabet introduced their AI services along with cloud business. Meta, which owns Facebook and Instagram, also rolled out AI features and ad targeting.

“The implication of AI is extraordinarily large, and these big tech companies are investing hundreds of billions into it, with Nvidia benefiting the most. Overall there continues to be a good picture for its prospects,” said James Investment’s Ainina, according to Bloomberg.

Last week, Apple’s results underlined concerns about its revenue growth, along with weakness in China. Nvidia will report later this month.

For the September 2024 quarter, NVIDIA had reported a revenue of $30.0 billion, up 15 per cent from the previous quarter and up 122 per cent from a year ago. It also exceeded analysts’ expectations.

For the quarter, GAAP earnings per diluted share was $0.67, up 12% from the previous quarter and up 168% from a year ago. Non-GAAP earnings per diluted share was $0.68, up 11% from the previous quarter and up 152% from a year ago.

Following the results, its founder and CEO Jensen Huang said, “NVIDIA achieved record revenues as global data centers are in full throttle to modernise the entire computing stack with accelerated computing and generative AI.”

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