Elon Musk to Unveil $2-$3 Billion Investment in India during Visit, sources say

Elon Musk is about to announce an investment of $2 to $3 billion in India during his upcoming visit, according to sources familiar with the situation. The investment is mainly for building a new factory. Scheduled to meet Prime Minister Narendra Modi in New Delhi next week, Tesla's CEO is set to make the announcement.

The meeting between Musk and Modi is expected to happen on Monday, coinciding with Musk's trip to India, where he plans to reveal his move to enter the world's third-largest automotive market, which is still new to electric vehicles.

Despite electric vehicles being only a small part of India's car sales, the sector is growing, mostly thanks to Tata Motors. In 2023, electric vehicles made up just 2% of total car sales, but the government aims for them to be 30% of new car sales by 2030.

Musk's visit to India unfolds amidst Tesla's efforts to navigate through a period of decelerating sales in key markets such as the United States and China. Recently, the company announced workforce reductions affecting 10% of its employees.

Details regarding Musk's itinerary in India remain closely guarded, with speculation surrounding the investment figures for India without divulging specifics such as the timeline or the location within India for the proposed plant.

Tesla's interest in India follows years of disagreement over high import taxes on electric vehicles, with Musk pushing for changes. In March, India lowered import taxes for electric vehicles to 15% from as high as 100% for some models, if a carmaker invests at least $500 million and sets up a factory.

As Tesla prepares to enter India, it's looking for showroom locations in New Delhi and Mumbai. Also, Tesla's Berlin factory is making right-hand drive cars to export to India later this year.