Elon Musk Said To Be In Talks With India's Richest Man To Help Establish Tesla Factory

This story was first published on the Benzinga India portal.

In a bid to increase its global footprint, Elon Musk's Tesla Inc. TSLA is reportedly exploring a potential partnership with India's richest man Mukesh Ambani's Reliance Industries (RIL) to establish a manufacturing facility in India.

A source quoted by the Hindu Businessline revealed that while talks are still in their preliminary stages, they have been ongoing for over a month. The actual role of RIL in the joint venture is yet to be clearly defined, but it is expected that the Indian conglomerate will significantly contribute to Tesla's manufacturing setup and related ecosystem in the country, a source involved in the discussions said.

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However, this potential collaboration does not necessarily indicate RIL's ambition to venture into the auto sector. The company has a history of partnering with others to innovate vehicle solutions. In a notable instance from last year, Reliance, in partnership with Ashok Leyland, launched India's first hydrogen-powered heavy-duty truck as well as swappable electric vehicle batteries.

Tesla has set aside $2 billion for its Indian expansion, considering locations in the Indian states of Gujarat, Maharashtra, and Tamil Nadu. Musk himself has acknowledged the business potential in India, the world's most populous country, making it a logical choice for Tesla's electric vehicle expansion.

Tesla officials are scheduled to visit India to finalize the plant's location and discuss the details of the joint venture with Reliance Industries. However, these discussions are not exclusive and Tesla may consider another partner if talks with Reliance falter.

This move aligns with the Indian government's new electric vehicle policy and tax incentives, which aim to transform India into a global hub for electric vehicle manufacturing.

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