Tesla is reportedly exploring potential partnerships to establish its presence in India’s electric vehicle market. According to insiders, discussions are ongoing between Tesla and Reliance Industries for a possible collaboration to build a manufacturing facility in the country.
“These discussions are in the early stages and have been happening for over a month,” said a source. It’s important to note that Reliance Industries’ involvement is not indicative of entering the automotive sector but rather enhancing electric vehicle capabilities in India.
Tesla has reportedly earmarked $2 billion for its upcoming ventures in India. The company is exploring various locations, including Gujarat and Maharashtra, with Maharashtra potentially being the preferred choice. “Tesla aims to utilize the facility for both domestic sales and exports, favoring a location with suitable port facilities,” noted a source.
During a session on X (formerly Twitter) Spaces with Nicolai Tangen, CEO of Norges Bank Investment Management, Elon Musk, CEO of Tesla, highlighted the significance of electric cars in India due to its large population. This statement essentially confirmed Tesla’s intention to enter the Indian market.
Senior Tesla officials are expected to visit India within the next month to finalize the plant location and solidify the collaboration with Reliance Industries. However, it’s important to mention that since the discussions with RIL are not exclusive, Tesla may consider other domestic partners if the ongoing talks do not progress as anticipated.