Tesla, a multibillion-dollar American electric vehicle company, has finally agreed to set up an electric vehicle factory in India. In late April, according to sources, Tesla will send a delegation from the United States of America to India to study some sites where they can set up their electric vehicle (EV) manufacturing factory.
In the last many years, Tesla’s Elon Musk and India Transport Minister Nitin Gadkari have been talking about how Tesla can operate in India and reduce the cost of their EVs.
Nitin Gadkari was sure and clear about his stand, saying he wants Tesla to set up their EV plant in India; otherwise, the Indian government will not allow Tesla to sell in India that easily, plus the taxes would be high because Tesla imports their cars from China.
Because of the price war in the market, Tesla also missed their last quarter estimates, giving a red sign to investors, which eventually forced Elon Musk to set up their EV plant in India, which can somehow help them boost their revenue.
According to the sources, Tesla will focus primarily on three states: Tamil Nadu, Maharashtra, and Gujarat, as they already have automotive hubs, which can help Tesla save a lot of money.
Also, government initiatives and schemes to promote electric vehicles can be quite beneficial for Tesla, like when Tata started selling their EVs, and, after that, Tesla is also considering making an electric car. So Tesla can benefit from government schemes that will assist them in acquiring land and lowering taxes on electric vehicles, ultimately lowering the cost of the vehicle.