Tesla CEO Elon Musk likely to unveil $2-$3 billion India investment during visit: Report

Tesla's CEO, Elon Musk, is poised to reveal a significant investment in India amounting to $2-$3 billion, with the primary focus on constructing a new factory. This announcement is expected to coincide with Musk's visit to New Delhi next week, where he is scheduled to meet with Prime Minister Narendra Modi, two sources familiar with the discussions told Reuters.

Scheduled for Monday, Musk's meeting with Modi during his India trip is anticipated to mark the unveiling of his ambitious plans to penetrate the world's third-largest automobile market, where the adoption of electric vehicles is still in its nascent stages.

India's electric vehicle (EV) market, though currently modest, is on an upward trajectory and is currently dominated by local automaker Tata Motors. EVs accounted for a mere 2% of total car sales in 2023, but the Indian government has set an ambitious target for 30% of new cars to be electric by 2030.

Musk's visit to India comes at a crucial juncture as Tesla grapples with declining sales in its key markets of the United States and China. This week, the company announced layoffs affecting 10% of its workforce.

While details of Musk's itinerary in India remain tightly under wraps, the CEO has confirmed via his social media platform X that he will indeed meet with Modi during his visit.

According to the Reuters report, Musk is expected to disclose the investment amount for India during his visit, though specifics such as the timeline or the location within India for the new plant are likely to remain undisclosed for now.

Tesla has been vocal about its concerns regarding India's high import taxes on EVs, with Musk advocating for a change in policy. In March, the Indian government unveiled a new EV policy aimed at incentivising investment by lowering import taxes to 15% from as high as 100% on certain models, provided the automaker invests a minimum of $500 million and establishes a manufacturing facility.

Reports from Reuters indicate that Tesla has already initiated the search for showroom spaces in New Delhi and Mumbai. Additionally, the company's Berlin factory has commenced production of right-hand drive vehicles, with plans to export to India later this year.

In addition to his business engagements, Musk is also expected to participate in an event organised by the Indian government in New Delhi, focusing on space startups. Musk, who owns US space company SpaceX, is likely to bring his expertise and insights to the gathering.