According to the company’s chief executive, India’s Prime Minister Narendra Modi was pushing Tesla to make a “significant investment” in the country. Musk said such an announcement was expected soon, Reuters partner ANI reported. His comments came after a meeting with Modi on Tuesday during the Indian leader’s state visit to the United States.
During the meeting, the two discussed energy issues and the upcoming India-U.S. technology partnership, the government said in a statement. It added that Modi also encouraged Tesla to bring its electric vehicles to India. Musk said he was ‘increasingly optimistic’ about the future of India and that Tesla would invest in the country ‘as quickly as humanly possible.’ He also cited the country’s potential for sustainable energy, including solar power and stationary battery packs. The CEO also hoped to bring SpaceX’s Starlink satellite internet service to India.
Tesla’s entry into India is essential for the company, which currently has a gigafactory in Shanghai, its most giant factory outside the U.S. The company plans to open another factory in 2024 near Monterrey, Mexico. Musk has suggested adding factories in France, Germany, and Spain.
Last month, Musk said the company might pick a location for a new factory by the end of this year and that India was an exciting option because U.S. companies need to reduce reliance on China as they face tensions with Beijing over trade disputes. Despite the setbacks, Tesla’s investors remain confident that the electric car maker has the potential to succeed in the world’s second-most populous nation. Analysts say a Tesla plant in India would help the company reduce manufacturing costs and better compete with rivals such as Chinese electric carmakers.
The CEO of Tesla’s main shareholder, the Greenlight Capital fund, said in April that he hoped Musk would spend less time on his various businesses and focus more on the car maker. Several Tesla shareholders have voiced concern that the tech billionaire, chairman of reusable rocket firm SpaceX and co-founder of artificial intelligence startup Neuralink, needs to be more focused on running Twitter to devote enough time to his other projects. Investors have urged the company’s board to ensure he dedicates more time to the carmaker.
