In a significant development, Tesla is poised to unveil a substantial investment of up to $3 billion during its forthcoming visit to India alongside Prime Minister Narendra Modi.
The electric vehicle (EV) giant has been diligently fostering ties with India for years, aiming to introduce its cutting-edge vehicles to a broader audience in the country.
However, negotiations between Tesla and India hit roadblocks due to divergent requests: while Tesla sought reduced import duties to gauge demand, India insisted on a commitment to establish a local manufacturing facility.
Despite these hurdles, speculation persisted. Last year, CEO Elon Musk met with Modi in New York City, expressing heightened optimism about a potential collaboration.
"I am confident that Tesla will be in India and will do so as soon as humanly possible," Musk affirmed in an interview post their meeting.
Recent reports indicated that Musk and Modi were set to convene in India to finalize arrangements, a prediction now seemingly coming to fruition.
Sources familiar with the matter revealed to Reuters that Tesla will disclose an investment ranging between $2 billion and $3 billion, primarily earmarked for constructing a new factory.
India faces a scarcity of electric vehicles, with demand lagging behind. Merely 2 percent of last year's total car sales comprised EVs, indicating a vast untapped market awaiting innovative solutions like those offered by Tesla.
However, Tesla's immediate strategies for the Indian market remain ambiguous. Concurrently, the company is focused on ramping up construction efforts at its planned factory in Mexico.
Moreover, Tesla recently announced a substantial reduction in its workforce, terminating over 14,000 employees. In its SEC filing, the company cited a reduction exceeding 10 percent of its total employee count.
Nevertheless, Tesla has made strides to propel its Indian endeavors forward, assembling a dedicated team of executives and arranging shipments of vehicles from its Berlin Gigafactory to India to gauge consumer interest.
With this significant investment announcement, Tesla is poised to make substantial inroads into India's burgeoning EV landscape, potentially revolutionizing the country's automotive sector.
Learn more about Tesla's global expansion and innovations here
