Elon Musk Says Tesla's New Factory Location To Be Finalized Soon: Is India A Potential Destination?

Tesla Inc TSLA CEO Elon Musk said on Tuesday the electric vehicle maker is on track to finalize the location for its new factory by the end of this year.

What Happened: Amidst growing curiosity about Tesla's next manufacturing base, Musk said that a location for a new factory would likely be chosen before the year's end.

When asked by a journalist from The Wall Street Journal at an event if India was interesting, Musk emphasized his enthusiasm with a resounding "Absolutely," reported Reuters.

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Last week, Rajeev Chandrasekhar, India's deputy minister for technology, told Reuters during an interview that Tesla was serious about establishing a manufacturing stronghold in the country.

This move aligns with Tesla's announcement earlier this year to open a gigafactory in Mexico as part of its strategy to bolster global production.

Why It Matters: Tesla's renewed interest in India comes nearly a year after it put on hold its plans to sell electric cars in the country after failing to secure lower import taxes.

According to reports, Reliance Jio, India's telecommunications giant, is engaged in preliminary discussions with the EV maker on the development of a dedicated private network for Tesla's operations. However, the progress of these talks is contingent upon Tesla's confirmation of its intentions to establish a manufacturing facility in India.

Top executives from Tesla are also reportedly set to hold discussions with officials from the Indian government. The objective of these meetings is to explore potential opportunities for sourcing parts from India.

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