Elon Musk Announces Tesla's Interest in Investing in India After Meeting with PM Modi

Elon Musk reveals Tesla's plans to make a significant investment in India after a productive meeting with Indian Prime Minister Narendra Modi. Explore the potential collaboration, sustainable energy prospects, and search for Tesla's next factory location.

Jun 21, 2023 - 08:35
Jun 21, 2023 - 08:35
Elon Musk Announces Tesla's Interest in Investing in India After Meeting with PM Modi
Elon Musk Announces Tesla's Interest in Investing in India After Meeting with PM Modi

Tesla Inc. is gearing up to make a substantial investment in India, as stated by Elon Musk, the CEO of the company, following a meeting with Indian Prime Minister Narendra Modi during his visit to the United States. Musk's confidence in Tesla's entry into the Indian market was evident as he spoke to reporters after the meeting, expressing the intention to establish a presence in India at the earliest opportunity. Although no official announcement has been made yet, Musk hinted at a significant investment and a promising relationship with India.

The discussions between Tesla and India were revived in May, putting an end to a year-long standoff. During a recent visit to India, Tesla executives engaged in fruitful talks with government officials regarding the local sourcing of parts and potential incentives. However, no specific proposal to establish a manufacturing plant was presented.

Musk, who has been persistently approached by Indian officials advocating for local production of electric vehicles, shared his plans to visit India in 2024.

The leaders in India are keen on leveraging the increasing tensions between China and the United States by positioning the country as an attractive alternative for companies seeking to diversify away from China. As part of Modi's visit to New York, he had extensive meetings with more than 20 prominent individuals, with the aim of enhancing India's investment prospects.

Importance of Collaboration

Collaboration on critical and emerging technologies, along with the removal of regulatory barriers hindering trade in strategic sectors, are key areas of focus for the upcoming meeting between Modi and US President Joe Biden, scheduled for Thursday. During an industry event in New Delhi, US National Security Adviser Jake Sullivan emphasized the significance of such collaborations.

Musk's interest in India goes beyond Tesla's electric vehicles. He sees immense potential for sustainable power generation through solar and wind energy, as well as energy storage using stationary batteries.

Additionally, Musk intends to revive efforts to launch SpaceX's Starlink internet services in remote Indian villages lacking access to broadband connectivity. SpaceX had established a wholly-owned subsidiary in India in 2021 and is eagerly awaiting government approval to roll out its services.

Tesla has not responded to inquiries sent to its press address, and there has been no comment from representatives of India's ministries of external affairs and road transport and highways.

Search for Tesla Factory Location

Musk has been actively searching for the ideal location for Tesla's next factory. During a recent meeting with French President Emmanuel Macron, an offer was extended to consider France as a potential host for the factory. However, Musk intends to thoroughly assess prospects for projects in Europe before making any decisions. Italy has also shown interest in attracting Tesla's investment.

Musk has engaged in discussions with several other Asian countries regarding potential factory locations. South Korea, identified as a top contender according to the office of President Yoon Suk Yeol, holds promise. Musk intends to make a decision following a comprehensive evaluation of investment conditions, taking into account factors such as the availability of a skilled workforce and technological resources.

In January, Bloomberg News reported that Tesla was on the verge of finalizing a preliminary agreement to establish a factory in Indonesia with a potential annual production capacity of up to 1 million cars.

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