After Apple, India Eyes Plum EV Maker Tesla To Migrate Production

Tesla, Inc TSLA representatives will likely meet India's commerce minister in July to discuss plans to build a factory to produce a fresh $24,000 car.

Tesla has expressed an interest in building a factory in India that would produce low-cost electric vehicles (EVs) for the local market and export, Reuters cites familiar sources.

Also Read: Apple Goes Big On India: Triples iPhone Production In Last Fiscal, Aims 25% Production By 2025

The highly awaited meeting followed the June meeting between Elon Musk and India's Prime Minister Narendra Modi when the latter promised significant investment in the country.

The EV Tesla representatives were said to have discussed a potential Indian plant that would be 25% cheaper than its current lowest-priced Model 3 sedan, which sells for just over $32,200 in China.

Tesla representatives look to meet Indian commerce minister Piyush Goyal with discussions centered around setting up an EV supply chain and discussing land allotment for a factory.

The Indian government has promised attractive incentives to tap investment from Tesla and Apple Inc AAPL.

UBS analyst Patrick Hummel downgraded Tesla from Buy to Neutral and raised the price target from $220 to $270.

Price Action: TSLA shares traded lower by 1.26% at $256.75 premarket on the last check Monday.

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