Elon Musk is expected to announce a significant investment of $2-$3 billion in India during his visit, according to sources.

“Mr. Musk is anticipated to unveil an investment amount in India soon, withholding specifics like the construction timeline or the exact location within an Indian state for the proposed plant.”

Elon Musk, the CEO of Tesla, is planning to invest $2-$3 billion in India. The investment will primarily go towards constructing a new factory. Musk is expected to make this announcement during his visit to New Delhi next week to meet with Prime Minister Narendra Modi, according to sources familiar with the discussions.

On Monday, during his trip to India, Mr. Musk is set to meet with Mr. Modi. The billionaire is expected to reveal his intentions to enter India’s auto market, which is the third-largest in the world. This is a significant move as electric car usage in India is still in its early stages.

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India’s electric vehicle (EV) market is steadily growing, with Tata Motors leading the way in the emerging sector. While EVs made up only 2% of total car sales in 2023, the government aims to have 30% of new car sales be EVs by 2030.

Elon Musk’s visit is happening at a time when Tesla is facing difficulties in important markets like the United States and China. Sales have been slowing down, leading the company to recently announce layoffs that will affect 10% of its workforce.

Also Read: IN SIMPLER TERMS, TATA ELECTRONICS HAS SECURED A DEAL WITH TESLA TO PROVIDE THEM WITH SEMICONDUCTOR CHIPS.

For a long time, Tesla has shown interest in entering the Indian market. Elon Musk, CEO of Tesla, has been critical of India’s high import taxes on electric cars. In response, the Indian government introduced a new electric vehicle (EV) policy in March. This policy aims to reduce import taxes from as high as 100% to 15% on certain models. However, to qualify for this tax reduction, carmakers like Tesla must invest a minimum of $500 million and establish a manufacturing facility in India.

Currently, Tesla is in the process of looking for showroom locations in New Delhi and Mumbai, and their Berlin factory plans to produce right-hand drive cars for export to India later this year.

Additionally, Elon Musk is expected to attend an event in New Delhi hosted by the Indian government, focusing on space startups. This shows Tesla’s increasing involvement and interest in the Indian market.