Financial Times and CNBC reports that Tesla will invest $3 billion in India and setup EV factory!

Elon’s Tesla exploring locations in India, Ready to invest $3 billion for EV Factory

Elon’s Tesla Motors is all set to invest Rs 25,000 crore for an EV factory in India and for this Tesla will soon send a team which will look for locations for the EV plant. As per the Financial Times reports, the Tesla team would focus on the states of Maharashtra, Gujarat, and Tamil Nadu, which already have automotive hubs and people with knowledge on the plans.

Tesla’s this step gives a clear message that they are ready to enter the India automobile market and will give competition to premium EV car brands like BMW, Audi, Mercedes-Benz, Porsche, Jaguar, Volvo, and Land Rover

The $3 billion investment news came after India announced a new EV policy for imported cars, promising to reduce the import tax by 85% on EV cars if the company commits to investing a minimum of ₹4,150 crores (approximately $500 million) and setting up a factory for EV car manufacturing within 5 years, with a domestic value addition of 50%.

So far, JSW and MG Motors have partnered and invested around ₹5,000 crores under this new EV scheme, and the joint partners’ aim is to sell 1 million EVs at the price of petrol cars by 2030.

According to persons familiar with Tesla’s plans, the company will send a team from the United States to examine plant sites in late April, with a focus on states with existing automotive hubs such as Maharashtra and Gujarat in the west and Tamil Nadu in the south.

Some automakers have plants in Haryana state, which borders New Delhi, and one source speculated that Tesla would also look for prospective sites in the city. However, the second individual stated that Elon Musk’s company would focus on the remaining three states because they have ports, making it easier to export cars.

With this investment, Tesla will start selling Model 3, Model Y electric cars which are priced above $35000. After 5 years when everything gets settled in India and everything is under control, then Tesla will change gears and start manufacturing low budget electric cars which will compete with Hyundai, Honda, MG, Tata and Skoda.

So what’s your take on Tesla EV factory? Please let us know in the comments and don’t forget to share this super amazing news with others on social media groups.


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