Tesla to make $2 billion factory investment

India appears to be close to an agreement with Tesla that would allow the company to ship its cars to the country starting next year and establish a factory within two years.

According to a Bloomberg report, the agreement is planned to be announced at the Vibrant Gujarat Global Summit, which will be held in January.

One of the sources speaking for the report said that the states of Gujarat, the home state of Indian Prime Minister Narendra Modi, Maharashtra, and Tamil Nadu are being evaluated due to their well-established ecosystems for electric vehicles and exports.

According to the report, while Tesla plans to make a minimum investment of at least $2 billion for its factory investment in the country, it could increase its procurement of automotive parts from the country to up to $15 billion.

One of the sources speaking for the report also said that the US automaker would attempt to manufacture some batteries in India to reduce costs.

Sources speaking to Bloomberg said that no final decision has been made regarding the agreement and that plans could change. Tesla boss Elon Musk stated in June that Tesla planned to make a "significant investment" in India and that he was considering a visit in 2024.

The Modi government has been developing policies for some time to increase domestic production of electric vehicles and to encourage the faster adoption of cleaner transportation.

News Source: 12punto