Elon Musk to Announce $2-3 Billion Investment in India, Establish New Factory in Country

Tesla's CEO Elon Musk is gearing up to announce an investment of $2-3 billion in India, as reported by news agency Reuters. The funds will be utilized to establish a new factory in the country. Musk is expected to make this announcement during his visit to New Delhi next week, where he is scheduled to meet with Prime Minister Narendra Modi, according to sources familiar with the matter cited in the report.

The timing of Musk's visit is crucial as he is poised to unveil his plans to enter India's automotive market, which ranks as the third-largest globally and is currently in the early phases of adopting electric vehicles. Although electric vehicles only accounted for 2% of total car sales in India in 2023, the government aims for 30% of new cars to be EVs by 2030. Musk's visit comes amidst challenges in key markets like the US and China, where Tesla has seen stagnant sales leading to recent workforce reductions.

While specific details of Musk's itinerary in India are not disclosed, the CEO confirmed his meeting with Modi on his social media platform. It is speculated that Musk may reveal the exact investment amount during his visit, although details such as the timeline and location for the new plant are yet to be disclosed. Tesla has long been interested in the Indian market, with Musk previously criticizing the country's high import taxes on electric cars.

In response, the Indian government introduced a new EV policy aimed at reducing import taxes to 15% for certain models, provided the carmaker invests at least $500 million and establishes a manufacturing facility in India. Tesla has already begun scouting locations for showrooms in New Delhi and Mumbai, while its Berlin factory is set to produce right-hand drive cars for export to India later this year. In addition to the investment plans, Musk is expected to participate in an event hosted by the Indian government in New Delhi focusing on space startups.