Elon Musk may unveil $3 billion India investment plans during visit: Report

Elon Musk may unveil $3 billion India investment plans during visit: Report

Tesla CEO Elon Musk is set to announce plans for his investment in India, amounting to $2-3 billion, reported news agency Reuters.

The investment will be directed towards establishing a new factory in the country. The announcement will be made during Musk’s upcoming visit to New Delhi next week, where he is scheduled to meet with Prime Minister Narendra Modi, according to two sources aware of the discussions, mentioned in the report.Â

Musk’s visit holds importance as he is expected to reveal his strategy to enter the world’s third-largest automotive market, where the adoption of electric vehicles is still in its early stages.

India’s electric vehicle (EV) market is on an upward trajectory, with Tata Motors currently dominating the relatively small segment. EVs constituted just 2% of total car sales in 2023, but the government has set a target of having 30% of new cars to be EVs by 2030.

The timing of Musk’s visit coincides with Tesla’s challenges in key markets like the United States and China, where sales have been slowing, prompting the company to announce layoffs affecting 10% of its workforce this week.

Details surrounding Musk’s itinerary in India are not in the open, with the CEO confirming only via his social media platform that he will meet with Modi. Sources suggest that Musk is likely to disclose the investment figure for India during his visit, though specifics such as the timeline or the location within India for the new plant remain undisclosed.

Tesla has been interested in India for a long time with Musk speaking against India’s high import taxes on electric cars for many years.

The Indian government unveiled a new EV policy in March aimed at reducing import taxes to 15% from levels as high as 100% on certain models, provided the carmaker invests a minimum of $500 million and establishes a manufacturing facility in the country.

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

Musk is also expected to participate in an event organised by the Indian government in New Delhi focusing on space startups.