Elon Musk Set To Announce $2-3 Billion Investment For Tesla In India During Meeting With PM Modi: Report

Elon Musk, the CEO of Tesla, is poised to announce a substantial investment of $2-3 billion in India, primarily for constructing a new factory.

This announcement is expected to be made during his visit to New Delhi next week, where he will meet with Prime Minister Narendra Mod as per a report by The Indian Express.

According to the same report, Musk's visit will include unveiling plans to enter India's burgeoning electric vehicle (EV) market, which is currently dominated by Tata Motors.

Despite EVs accounting for just 2 per cent of total car sales in 2023, the Indian government aims to have 30 per cent of new cars be EVs by 2030.

Musk's visit to India comes at a critical juncture for Tesla, as the company faces challenges with slowing sales in key markets like the United States and China.

This week, Tesla announced layoffs affecting 10 per cent of its workforce. While the specifics of Musk's investment in India are not yet public, it is anticipated that he will disclose the investment amount without divulging details such as the timeline or the location of the planned factory.

India's high import taxes for EVs have been a point of contention for Musk, who has advocated for a change in these policies.

In March, India's government announced a new EV policy that reduces import taxes to 15 per cent from as high as 100 per cent on certain models, provided the carmaker invests at least $500 million and establishes a factory.

Tesla has already begun scouting for showroom space in New Delhi and Mumbai, and its Berlin factory is manufacturing right-hand drive cars intended for export to India later this year.

Additionally, Musk is expected to participate in an event organized by the Indian government in New Delhi, focusing on space startups, given his ownership of the US space company SpaceX.