In a highly anticipated announcement, Elon Musk, the CEO of Tesla, has revealed that India’s Prime Minister, Narendra Modi, is actively encouraging the electric car manufacturer to make a substantial investment in the country. Following a meeting between the two influential figures during Modi’s state visit to the United States, Musk expressed confidence that an official announcement regarding Tesla’s investment in India would be made in the near future.
Sources close to the matter had previously informed Reuters that Musk intended to discuss plans for establishing a manufacturing base in India during his meeting with Modi. Musk, recognizing India’s immense potential in the realm of sustainable energy, particularly in solar power, stationary battery packs, and electric vehicles, also expressed his desire to introduce SpaceX’s Starlink satellite internet service to the Indian market.
Great conversation with @NarendraModi https://t.co/UYpRvNywHb
— Elon Musk (@elonmusk) June 21, 2023
During a press briefing held after the meeting, Musk commended Modi’s dedication to India, emphasizing the Prime Minister’s push for significant investments from Tesla. He stated, “He (Modi) really cares about India because he’s pushing us to make significant investments in India, which is something we intend to do.” Musk’s words conveyed his enthusiasm for the collaboration, as he added, “I am confident that Tesla will be in India and will do so as soon as humanly possible.”
In response to the meeting, India’s foreign ministry spokesperson took to Twitter to announce that Modi had invited Musk to explore investment opportunities in India’s electric mobility sector and its rapidly expanding commercial space industry. This move aligns with India’s plans to allow select U.S. companies to collaborate with Indian firms for investments in its space sector, with the goal of increasing their global launch market share five-fold within the next ten years, as disclosed by a source familiar with the matter.
Representatives from Tesla had already visited India the previous month and engaged in discussions with government officials and ministers regarding the establishment of a manufacturing base for cars and batteries within the country. Musk had previously revealed that Tesla would likely finalize the location for a new factory by the end of this year, acknowledging India as an intriguing prospect for such an expansion.
Reflecting on the meeting with Modi, Musk’s excitement was evident as he expressed, “India has a very strong potential for both solar power and electric vehicles. I am hopeful that we can bring Starlink satellite internet service to India as well.” He added, “I think Prime Minister Modi really cares about the country and he wants to do the right thing for sustainable energy future. And so, I think India is going to do extremely well.”
The interest shown by U.S. companies, including Tesla, in diversifying their manufacturing bases away from China amidst tensions between Washington and Beijing is not surprising. In the case of Tesla, the company had put its India entry plans on hold last year due to unfavorable import tax structures. However, the recent developments indicate a renewed commitment to entering the Indian market and establishing a strong presence.
The meeting between Modi and Musk took place in the backdrop of an ongoing controversy involving Twitter, of which Musk is a prominent user. Twitter co-founder Jack Dorsey had accused India of threatening to shut down the platform for non-compliance with content takedown orders during the 2020-2021 protests. India promptly refuted the allegation, labeling it an “outright lie.” Musk, acknowledging the complex nature of operating in various countries, expressed the necessity for Twitter to comply with local government laws, stating, “Twitter does not have a choice but to obey local governments. If we don’t obey local government laws, we will get shut down…,” during the press briefing.
With Tesla’s imminent investment plans and the Indian government’s proactive approach to attract foreign companies, the stage is set for an exciting collaboration that could reshape India’s sustainable energy landscape and further strengthen its position in the global commercial space sector.
