Tesla in Talks with India to Build $24,000 Electric Car

Representatives of the American electric vehicle giant are set to meet India's Commerce Minister this month to discuss building a manufacturing plant for a new $24,000 electric car.

This move signals a turnaround after Tesla's efforts last year to reduce import taxes in India failed. It comes after CEO Elon Musk met with Prime Minister Narendra Modi in June and pledged significant investments.

The proposed $24,000 Tesla EV would be 25% cheaper than the company's current lowest-priced Model 3 sedan. The target price was first reported by The Times of India earlier this month.

Tesla is aiming to capture the mass market in India, where EVs account for under 2% of total car sales. The planned affordable EV is also slated for export. This month's talks with the Indian government will be Tesla's highest-level discussions since Musk met Modi. They are expected to focus on setting up an EV supply chain and factory site.

Tesla has declined to comment. But it has previously expressed interest in an Indian manufacturing base for affordable exports.

The $24,000 EV would be built on Tesla's next-gen platform, designed to halve production costs. Multiple models, including robotaxis, are planned.

A Mexican Tesla plant under construction will be the first to use the platform. The company plans to roll it out globally.

Tesla currently produces EVs in the United States and China. Its Shanghai Gigafactory is its largest, accounting for 40% of capacity. Expansion plans there await approval.

The push into India underscores Tesla's aggressive global expansion and cost-cutting efforts under CEO Musk. The aim is to boost sales by making EVs significantly more affordable.

Source: REUTERS