Tesla is reportedly considering a substantial investment of up to $2 billion for establishing a manufacturing facility in India. However, this is contingent on the Indian government’s willingness to reduce import duties on Tesla vehicles to 15% during the initial two years of operations. The move comes as part of India’s efforts, outlined in an August report, to formulate a new electric vehicle (EV) policy aimed at significantly lowering import taxes, potentially down to 15%.
According to sources, Tesla is open to committing $500 million if the reduced duty applies to 12,000 vehicles. This investment commitment would escalate to $2 billion if the concession extends to cover 30,000 vehicles. While the government is currently evaluating the feasibility of Tesla’s $2 billion investment proposal, discussions are also revolving around adjusting the number of vehicles eligible for the reduced duty.
As of now, key stakeholders involved in the matter, including Tesla and relevant government ministries such as the department for promotion of industry and internal trade, ministry of heavy industries, ministry of road transport & highways, and the ministry of finance, have not provided official comments on the ongoing discussions.
Note: The Economic Times initially reported on Tesla’s potential investment plans, but neither Tesla nor the government entities officially announced this.
I’m Abhishek Sharma, an Advocate based in Delhi, entrepreneur, investor, and founder of BigBreakingWire.I am an enrolled Advocate with a strong interest in entrepreneurship, media, and technology. I founded BigBreakingWire, a digital news platform covering breaking news, business, financial markets, companies, and important developments in India and around the world.I also have a software company and take an active interest in technology, software, AI, digital products, and new business ideas.As an investor, I’m interested in discovering and investing in promising businesses and startups. I look for good ideas, strong founders, practical business models, and opportunities with long-term potential.I enjoy building businesses, learning about new industries, and connecting with people who are working on interesting ideas and opportunities.Advocate | Entrepreneur | Investor | Founder & Editor-in-Chief, BigBreakingWire
Last reviewed by Abhishek Sharma on February 7, 2026
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