Elon Musk's Tesla likely to set up factory in India for EVs starting at Rs 20 lakh

For the past few days, discussions are going on that Tesla, the electric car company of industrialist Elon Musk, is going to start its factory in India.

Elon Musk's Tesla has started discussions with the Indian government on an investment proposal to set up a car factory in India with a capacity of 5 lakh electric vehicles annually.

These electric cars are likely to be sold in the Indian market for Rs 20 lakh.

Tesla is looking to use India as an export base, as it plans to ship cars to countries in the Indo-Pacific region.

Tesla's shift in investment plans in India comes within weeks of CEO Elon Musk meeting Prime Minister Modi during his visit to the US last month. Musk then said that he is a fan of PM Modi.

Musk said that Prime Minister Modi really cares about India, because he is pushing us to make significant investments in India, which we want to do. We're just trying to find the right time, and I'm sure Tesla will be involved.

Tesla resumed communication with the government in May. A team from the company visited India a month before Modi's visit. Tesla's potential investment in India is part of the company's global strategy to diversify its manufacturing base beyond China.

Musk is more bullish on the Asian manufacturing company. If this resolution is passed, it will give a big boost to the government's Make in India initiative.

Tesla has eyed the Indian market for years, but abandoned plans to move forward last year after not getting special incentives from the government to import cars at low prices. Instead of importing cars from other places including China, the company would manufacture cars locally.

Musk said after meeting Modi, adding he hopes to bring SpaceX's Starlink satellite internet service to the country as well.