On Wednesday, Punekarnews, an Indian news outlet, reported that Tesla (NASDAQ:TSLA), operating under its Indian subsidiary, Tesla India Motor & Energy, has recently secured a 5,850-square-foot space in Pune, India's Panchshil Business Park. This development has sparked further rumors and speculation about the all-electric automaker’s potential market entry into the country.
Tesla's acquisition of the office space signifies a significant step in its endeavor to establish a firm presence in India. This move reflects the company's determined progress towards setting up an automotive production facility in the region, with the intention to manufacture a $24,000 vehicle tailored for the Indian market and for exports.
For years, Tesla and India have been trying to forge a business relationship, but circumstances never quite aligned to prompt Tesla's commitment to establish a factory in the country. However, this year marks a notable shift as things appear to be taking a more serious turn.
In particular, CEO Elon Musk mentioned India as a potential location for the company's next production facility, indicating a heightened interest in the Indian market.
“I am confident Tesla will be in India, and we’ll do so as soon as humanly possible. Hopefully, we’ll be able to announce something in the not-too-distant future. We don’t want to jump the gun on an announcement, but it’s quite likely that there will be a significant investment and relationship in the future.” Musk said in a June meeting with India’s Prime Minister, Narendra Modi.
It seems unlikely that Tesla will build a facility near the space in Pune. However, the region is known for its IT and automotive industries, its progressive business environment, skilled workforce, and access to essential resources.
Shares of TSLA are down 2.88% in afternoon trading on Wednesday.