Tesla Inc. is negotiating the construction of a new industrial complex with the government of India, Reuters reports. Inside sources claim that the primary purpose of the factory is to churn out cheap EVs priced from the equivalent of U.S. $24,000.
There has been no official announcement from Tesla yet. The sources claim that Tesla has been actively pursuing the negotiations for months, with top executives visiting the country every now and then. The Trade Minister is expected to be present in person during the next round of the talks; if true, it would mean that the country authorities are indeed interested in working with Tesla.
The automaker may be interested in the Indian market because of its cheap labor and world-leading growth potential. The insiders are saying that, although the automaker targets India as the primary market for its affordable EVs, the actual production volumes may be high enough to justify exports. Later on, a battery plant may be constructed on the same site as well.
At the moment, the Model 3 shown in the gallery and video here remains Tesla’s most affordable electric car worldwide.