Tesla CEO Elon Musk To Announce $2-$3-Billion Investment In India During Visit: Report

Tesla Investment: Elon Musk's anticipated announcement is slated for his forthcoming visit to New Delhi next week, where he is scheduled to meet with Prime Minister Narendra Modi

Tesla Investment: Elon Musk is expected to disclose the investment figure for India while withholding specifics such as the timeline or the precise location within India where the new factory will be constructed. ( Image Source :Getty )

Tesla Investment: Tesla CEO Elon Musk is poised to disclose a significant investment of $2-$3 billion in India, primarily earmarked for establishing a new factory, two sources privy to the development told news agency Reuters. According to the report, Musk's anticipated announcement is slated for his forthcoming visit to New Delhi next week, where he is scheduled to meet with Prime Minister Narendra Modi.

During his visit on Monday, Musk, the billionaire entrepreneur, is expected to unveil his strategic blueprint to penetrate the world's third-largest auto market, where the adoption of electric vehicles (EVs) is still nascent. In 2023, EVs accounted for a mere 2 per cent of total car sales in India, with the market predominantly dominated by local carmaker Tata Motors, Maruti, and Mahindra. Nonetheless, the government has set an ambitious target of achieving 30 per cent EV penetration among new car sales by 2030.

The timing of Musk's visit coincides with Tesla's endeavour to address dwindling sales in its major markets, notably the US and China. Earlier this week, the company announced workforce layoffs affecting 10 per cent of its employees.

Details surrounding Musk's itinerary in India are closely guarded, with the CEO confirming only via his social media platform X that he will be meeting with Prime Minister Modi. According to the sources, Musk is expected to disclose the investment figure for India while withholding specifics such as the timeline or the precise location within India where the new factory will be constructed.

Tesla's response to requests for comment to Reuters was not immediately available.

For years, Musk has been an outspoken critic of India's high import taxes on EVs, advocating for policy reforms. In March, the Centre launched a revamped EV policy, slashing import taxes to 15 per cent from as high as 100 per cent on certain models, contingent upon a carmaker's investment of at least $500 million and the establishment of a local factory.

Reports from Reuters indicate that Tesla has already started the search for showroom space in New Delhi and Mumbai, with its Berlin factory gearing up to manufacture right-hand drive cars slated for export to India later this year.

In addition to his business engagements, Musk is expected to participate in an event organised by the central government in New Delhi, focusing on space start-ups, the sources said. Elon Musk is also the founder of SpaceX, a prominent US space firm.