Elon Musk, CEO of Tesla, plans to invest $2-$3 billion in India, which could impact the country’s electric vehicle market significantly, Reuters reported on Wednesday, citing sources.
The sources indicate that Musk will announce the investment during his visit to New Delhi next week, with a focus on establishing a new manufacturing facility.
This move signifies Tesla’s intent to enter the world’s third-largest auto market, where EV adoption is still in its early stages.
While currently dominated by local carmaker Tata Motors, India’s EV market has shown promising growth, capturing just two per cent of total car sales in 2023.
The Indian government has ambitious plans to increase that share significantly, aiming for 30 per cent of new car sales to be electric by 2030.
Musk’s visit comes at a time when Tesla is facing challenges in its established markets, namely slowing sales in the US and China.
Sources suggest Musk is likely to announce a ballpark investment figure without divulging specifics like a timeline or the chosen location for the new factory within India. Tesla has yet to comment on the developments.
