On his visit to India, Tesla CEO Elon Musk is reportedly expected to announce an investment of $2 billion to $3 billion.

April 18 :
According to two sources familiar with the matter, Tesla CEO Elon Musk is expected to announce a $2-$3 billion investment in India during his visit to New Delhi next week to meet with Prime Minister Narendra Modi. The majority of the investment will go towards constructing a new factory.

While in India, the billionaire is scheduled to meet with Modi on Monday. During their meeting, Musk is likely to reveal his intentions to join the world's third-largest auto market, where the adoption of electric cars is still in its early stages.

Tata Motors, a domestic automaker, controls the tiny but rapidly expanding electric vehicle industry in India. In 2023, EVs accounted for a meagre 2% of all vehicle sales. However, by 2030, the government aims to have 30% of new automobiles be EVs. Musk's visit coincides with Tesla's announcement this week of layoffs impacting 10% of its personnel and its struggle with falling sales in the United States and China, two of its biggest markets. Musk is the owner of SpaceX, a u.s. space enterprise.

Only on his social media site X has Musk confirmed publicly that he will meet Modi in India; details of his visit to India are otherwise strictly guarded. The two sources informed us that Musk is expected to announce an investment amount for India, but will withhold information like a specific date or the Indian state where the facility will be constructed. A request for comment was not promptly addressed by Tesla.

Musk fought against the high import taxes on electric vehicles in India for a long time. With a minimum investment of $500 million and the establishment of a factory, the Indian government introduced a new electric vehicle policy in March that reduces import duties on some models from 100% to 15%.

Reports have indicated that Tesla has begun searching for dealership space in both New Delhi and Mumbai. Additionally, the company's Berlin facility is reportedly manufacturing right-hand drive cars that it plans to sell to India later this year. According to the two individuals, Musk is also expected to attend a space startup event in New Delhi hosted by the Indian government.