Tesla’s CEO Elon Musk is gearing up to reveal groundbreaking plans for his company’s investment in Bharat, set at a staggering $2-3 billion. This significant investment is earmarked for establishing a new factory within the country’s borders.
The much-anticipated announcement is expected to take place during Musk’s upcoming visit to New Delhi, where he is slated to meet with Prime Minister Narendra Modi. This insight comes from two credible sources familiar with the ongoing discussions, as reported.
The strategic move holds paramount importance as Musk goal to unveil Tesla’s grand strategy for penetrating the Indian automotive market, which stands as the world’s third-largest.
Notably, Bharat’s embrace of electric vehicles (EVs) is still in its infancy, with Tata Motors currently holding sway in the relatively small EV segment. In 2023, EVs constituted merely 2% of total car sales, yet the Bharatiya government has set an ambitious target of reaching 30% EV adoption by 2030.
Musk’s visit couldn’t have come at a more crucial juncture for Tesla, with the company facing headwinds in key markets like the United States and China, where sales have been on the decline. This downturn has prompted Tesla to announce layoffs affecting 10% of its workforce this week. Amidst these challenges, Musk’s attention towards Bharat signals a strategic pivot towards untapped markets with promising potential.
While details regarding Musk’s itinerary in Bharat remain shrouded in secrecy, the CEO has confirmed, through his social media platform, his impending meeting with Prime Minister Modi. Although specifics such as the timeline and location for the new plant within Bharat are yet to be disclosed, speculation is widespread that Musk will reveal the exact investment figure for Bharat during his visit.
Tesla’s interest in Bharat is not new, with Musk having voiced concerns over the country’s high import taxes on electric cars for several years. In response, the Bharatiya government rolled out a new EV policy in March, aimed at slashing import taxes to 15% from levels as exorbitant as 100% on certain models. However, this concession comes with a condition: carmakers must invest a minimum of $500 million and establish a manufacturing facility within India’s borders.
Tesla has wasted no time in laying the groundwork for its Bharatiya venture. The company has already commenced scouting for showroom locations in New Delhi and Mumbai.
Moreover, Tesla’s Berlin factory is gearing up to produce right-hand drive cars, intended for export to Bharat later this year, further underscoring the company’s commitment to tapping into the Bharatiya market.
In addition to his business engagements, Musk is also expected to participate in an event organized by the Bharatiya government in New Delhi, focusing on space startups.
Underscoring Musk’s multifaceted interests beyond the automotive realm, hinting at potential collaborations and ventures in Bharat’s burgeoning space industry. As anticipation mounts, all eyes are on Musk’s visit, poised to witness a historic leap forward in Bharat’s electric vehicle landscape.
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