Tesla is set to unveil a substantial investment of up to $3 billion in India during an upcoming visit by CEO Elon Musk to meet with Prime Minister Narendra Modi, according to reports. The move signifies Tesla’s ongoing efforts to deepen its presence in the Indian market and expand its global footprint.
The electric vehicle (EV) giant has been actively pursuing a stronger foothold in India, aiming to introduce its vehicles on a larger scale. However, negotiations between Tesla and India have faced hurdles, with disagreements over import duties and the establishment of a local manufacturing facility.
Despite these challenges, Tesla has remained committed to entering the Indian market. Last year, Elon Musk expressed confidence in Tesla’s future in India, stating, “I am confident that Tesla will be in India and will do so as soon as humanly possible.”
The anticipated investment announcement follows Musk’s meeting with Modi in New York City last year, where discussions reportedly centered on a potential partnership. Sources familiar with the matter have indicated that the majority of the investment will be directed towards the construction of a new factory in India.
India represents a significant opportunity for Tesla, as the demand for EVs in the country is on the rise. However, challenges persist, with EVs accounting for just 2 percent of total car sales in India last year.
Tesla’s strategic moves in India include the creation of a dedicated team to oversee its entry into the market and plans to ship cars from its Berlin Gigafactory to India to gauge demand. Despite recent workforce reductions and ongoing construction efforts at its planned factory in Mexico, Tesla remains focused on expanding its global operations and solidifying its position in key markets like India.
