Rumor has it that Tesla is going to make an announcement next month - January 2024 - that it is entering the India EV market with the announcement of a Gigafactory. Is this rumor true?
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Tesla Announcement of Gigafactory in India Soon
Multiple news sources are reporting that Tesla could launch in India next year with the announcement of a Gigafactory at next month's Vibrant Gujarat Summit, which will be held in Gandhinagar, India.
This is a global gathering of investors interested in social and economic growth in India in areas such as food, automobiles, ceramics, chemicals, gems, and pharmaceuticals.
It is rumored that Tesla CEO, Elon Musk, is going to make an appearance at this event. Several media organizations in India say that Tesla is in the final stages of negotiating with the government for land to set up a manufacturing facility.
Media sources also report that Tesla is likely to set up its Gigafactory in Sanand, India. There are other automakers there in India, such as Tata Motors.
Sanand is located in the western portion of India, just north of the Gulf of Khambhat. Being near a port like that may be a big bonus for Tesla building a Gigafactory in India in order to also export the vehicles to other locations.
I think Tesla will build the next generation compact car and a sub-compact car in India.
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Are the Rumors of a Tesla India True?
It was fairly recently that the India Prime Minister wished Elon Musk a "speedy recovery" after visiting Tesla's Fremont factory. That at least tells us that a conversation is happening.
Is Tesla ready to build a Gigafactory in India? I think Tesla is ready to build a Gigafactory there IF it starts with the compact car, which it could hopefully get down to $20,000 by building only two falcon wing doors and two seats to be competitive with the India car market.
Tesla would also need to build out its Suprecharger network in India in order to make EVs viable. Fortunately, Tesla has tens of thousands of Superchargers across the world, so I think Tesla is up to the task.
It will also be important for there to be favorable tax and tariff laws for Tesla to enter the India market.
There is also the big opportunity for Tesla energy in India, and I think the Megapack and Tesla solar would be perfect. There's over 1 billion people living in India, and imagine renewable and affordable energy being abundant there.
I think there is a good chance this rumor is true, but Tesla has to start with the compact car in India. If this is true, I think Tesla would simultaneously build the compact car in the following locations:
- Giga Texas
- Giga Berlin
- Giga Shanghai
- Giga Mexico
- Giga India
If Tesla does this, they are looking at an around 10 million per year run rate of production of the compact car. This could be Tesla's secret master plan that they haven't shared with anyone - to simultaneously build the compact car in 5 locations around the world.
If you think that 10 million compact cars is a lot, wait until Tesla builds its sub-compact car for half the cost of the compact car.
I think if Tesla builds a Gigafactory in India, they won't need to make any more Gigafactories to meet their 20 million per year vehicle goal.
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Here are some questions to think about when it comes to Tesla setting up a Gigafactory in India:
- Will there be favorable tariff and other laws for Tesla to sell its cars there?
- Will Tesla be able to build an EV at a cost that is competitive with the India EV market?
- When will Tesla complete a Gigafactory in India, and when will first production of a vehicle begin?
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Hi! I'm Jeremy Noel Johnson, and I am a Tesla investor and supporter and own a 2022 Model 3 RWD EV and I don't have range anxiety :). I enjoy bringing you breaking Tesla news as well as anything about Tesla or other EV companies I can find, like Aptera. Other interests of mine are AI, Tesla Energy and the Tesla Bot! You can follow me on X.COM or LinkedIn to stay in touch and follow my Tesla and EV news coverage.
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Article Reference: Hindustantimes
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