An Indian minister from the state of Andhra Pradesh has met with one of Tesla’s top executives at the company’s Gigafactory Texas, following years of attempts to court the U.S. automaker to build a manufacturing facility in the country.
On Monday, Nara Lokesh, the Minister of Human Resources Development for Andhra Pradesh, announced in a post on X that he met with Tesla CFO Vaibhav Taneja to discuss building an electric vehicle (EV) manufacturing facility in the state. Lokesh said he let Taneja know of the Anantapur district as a good option, noting that the state is aiming to reach a target of achieving 72GW of renewable energy production by 2029.
Check out the full post from Lokesh below, as translated into English:
I visited the Tesla headquarters in Austin. I explained to Tesla CFO Vaibhav Taneja the possibilities and advantages of investing in Andhra Pradesh in the field of manufacturing electric vehicles internationally. Under the leadership of visionary leader Chandrababu, we have aimed to achieve 72 gigawatts of renewable energy production in AP by 2029, and we have sought the help and support of top global companies like Tesla to achieve our goal. I informed that Anantapur district of Andhra Pradesh will be a strategic location for setting up of Tesla EV manufacturing and battery product units.
Tesla’s history of rumored EV sales, manufacturing in India
Rumors of Tesla’s entry into India—both regarding the company’s eventual launch of EV sales in the country and whispers of a potential manufacturing facility—have circulated widely for years, but so far it doesn’t seem like there are any concrete plans to follow up on these hopes.
Since at least 2021, Tesla has attempted to garner reduced import duties on its EVs, effectively allowing it to sell its vehicles in the country at the highest profit margin possible. Elon Musk later went on to say that it would be “quite likely” that Tesla could build a factory in India, once the company is able to succeed with imported vehicles.
Rumors of Tesla launching EV sales in India and those of a Gigafactory in the country haven’t slowed down in the many months between then and now, though talks on the subject seem to have largely halted throughout this year.
More recently, Musk was expected to visit India in April, though he later delayed the visit citing heavy obligations with Tesla at the time. Just days later, Musk went on to visit China, eliciting some negative reactions from government officials in the country.
“Such is the lack of faith in the Modi govt’s regulatory policies, that big businesses are turning to China over India repeatedly,” wrote Shama Mohamed, the national spokesperson for Modi’s opposition Congress party.
The visit hasn’t been rescheduled as of yet at this point, and it’s not clear if or when it will be. In June, however, Musk tagged India Prime Minister Narendra Modi in a post, saying that he was “looking forward to [his] companies doing exciting work in India.”
Previous reports from local outlets this year suggested that three other states were frontrunners for a potential facility, though no apparent motion has been made on Tesla’s EVs getting import taxes lowered, allowing it to start sales in the state. Interestingly, the three states did not include Andhra Pradesh.
In any case, it’s unlikely that we’ll see any tangible news on the subject until the two parties can come to an agreement on Tesla imports, as Musk has previously stated, so it’s probably not time for those in the country to get their hopes up just yet.
Tesla keen on three states for India expansion — if it ever happens
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