Five reasons why Tesla could invest in Romania someday

Newsroom 27/04/2016 | 10:30

Romania can dream that some day an innovative company of the likes of Tesla Motors might invest locally. Although you could say this idea is far-fetched, the government hinted that it has already started to negociate with some electric car makers.

Maybe it will not be the American Tesla after all, but here are some of the reasons that such an investor should carefully look at what Romania has to offer.

Tesla exploring investment in Romania? | Minister Borc: “The only thing missing 

Talent pool

Romanians have technical skills that are appreciated by both multinationals and local firm. Our programmers are already building software that is used by companies around the world. Yes, we are not that great at building at own products, but this is also starting to change, and technology star-ups are popping-up all the day. Some of them could provide new technology for electric cars.

Automotive experience

Yes, Romania already has a strong automotive industry, with French Renault and US-based Ford operating plants here. Alongside, there is a plethora of suppliers, providing anything from tires to sensons and software. So, the engineers are here.

Tax breaks

Authorities want to offer fiscal incentives for companies doing heavy R&D research. The economy minister Costin Borc said that the tax exemption for IT workers has paid off and additional options are taken into consideration.

State aid

Romania has already provided financial support for large companies in the automotive segment that have invested locally. There are financing schemes for firms doing greenfield investments and for those hiring people in the IT sector

Strategic position

Tesla had opened an assembly plant in The Netherlands three years ago due to the excellent transportation infrastructure. The Dutch city of Tilburg is close to the port of Rotterdam and there are excellent rail and motorway.

Looking at Romania, things are not that bright in the infrastructure sector but  changes are happening. We already have the port of Constanta and the rail infrastructure is operational, although trains, especially freight ones, are travelling at low speeds.

If all goes well, the motorway link between Constanta and Western Romania could be finalized somewhere around 2020.

Already, the current car producers have been calling for public authorities to move faster on developing infrastructure projects.

If you want to find out more about Romania’s investment potential, you should check out our exclusive Invest in Romania Guide. More details, here.

Ovidiu Posirca

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