Tesla to confirm new factory location by year-end; will it be in India?

Tesla is gearing up to announce the location of its new factory by the end of this year. Elon Musk, the CEO of Tesla Inc, expressed during an event that the company will be finalising the decision in the coming months. When asked if he finds India 'interesting', Musk said, 'absolutely'. His enthusiasm for India coupled with Tesla's recent interactions with the Indian govt hint at a new EV.

Musk's recent comment aligns with statements made by India's IT minister Rajeev Chandrasekhar. A Reuters report cited the minister saying Tesla is serious about establishing a manufacturing base in the country.

While Tesla previously revealed plans to open a gigafactory in Mexico to expand its global production capacity, the focus has now shifted to selecting another strategic location for further growth.

Tesla's Primary Obstacle 

Earlier this month, Tesla officials met Indian govt representatives. Government sources told Business Today TV that the authorities are not in favour of reducing the import duty. On the other hand, Elon Musk has been very vocal about India's high import duties, calling it one of the highest in the world. Currently, all cars that are priced above $40,000 are levied an import duty of 100 per cent. The cars that are priced below $40,000 need to pay a 40 per cent import duty in India.

The long-standing stalemate situation between Tesla and the Govt of India can be resolved by establishing a new factory within the country's borders. Members of the govt, including transport minister Nitin Gadkari have encouraged Tesla to set up shop in the country in order to avail the benefits of 'Make-in-India' schemes.

Also read: Tesla 'serious' on establishing India production, innovation base, says MoS IT

Musk Plans Tesla's Future

In addition to discussing Tesla's factory plans, Elon Musk also floated the idea of creating an educational institution that would hold a significant portion of his voting power as part of Tesla's board. Although specific details were not provided, Musk expressed his preparedness to designate a successor to run the company in the event of unforeseen circumstances. He emphasized that he had already identified a potential replacement and shared his recommendation with the board.

The notion of a successor gained attention last year when James Murdoch, a Tesla board director, testified in court about Musk's identification of a potential successor amid investor concerns about his Twitter activities. Musk has since appointed a new CEO for Twitter, signaling his intent to shift his focus more toward Tesla.

As Tesla continues to expand its global presence and pursue new manufacturing opportunities, the confirmation of a new factory location by the end of this year, potentially in India, could have significant implications for the company's growth and the electric vehicle market as a whole.

Also read: 'Much more difficult to get into SpaceX, Tesla than Harvard,' says Elon Musk