June 20 – According to a source with firsthand knowledge of the situation, Tesla (TSLA.O) Chief Executive Officer Elon Musk will personally inform Indian Prime Minister Narendra Modi on plans to establish a manufacturing unit in the country.
The meeting, which will be the first at a high level to discuss the expansion, will take place on Tuesday during Modi’s state visit to the United States, according to the source, who declined to be named because the conversations would be private. The meeting will take place during Modi’s stay in the United States as a guest of the United States.
In the last month, executives from the American carmaker traveled to India and met with Indian bureaucrats and politicians to discuss the possibility of creating a manufacturing base for automobiles in India as well as the production of batteries in that country.
The insider described the scheduled conversation as a “high-level meeting about India’s economic potential” and stated that Musk and Modi will talk about investment plans and outlook.
“Tesla has very strong plans for India, including looking at manufacturing,” the insider continued. “Tesla is also looking at other countries.”
Tesla did not reply to Reuters inquiry. A request that was made outside of business hours did not receive a response from a spokeswoman for the Indian government.
Tesla abandoned its India entrance ambitions owing to high import tax structures last year, but the company has revived negotiations in recent weeks by discussing ideas with Indian authorities regarding a manufacturing base there, something India has long coveted. Tesla’s decision to shelve its India entry plans was a result of the high import tax structures.
Because it takes place only a few days after Twitter co-founder Jack Dorsey accused India of threatening to shut down the site for not complying with content takedown requests during a protest in 2020-2021, Modi’s meeting with Musk, who is the owner of Twitter, will take on a higher significance than it would have otherwise. India has said that the accusation is “completely false.”
Musk has not issued a statement about the incident, which whipped up a political frenzy in India.