Billionaire Elon Musk plans to spend billions of dollars, expecting Tesla to break through in the Indian market

Billion Dollar Investment in India

According to Forbes, Elon Musk is currently the 4th richest billionaire in the world. Not only is he famous as the CEO of famous companies such as Tesla, SpaceX and Neuralink, he also plays an important role in projects such as The Boring Company and OpenAI. Elon Musk is also known for promoting progress in the electric car industry, space mining, artificial intelligence research and other technology fields.

According to Indian media citing anonymous sources, billionaire Elon Musk is expected to visit India and have a meeting with Prime Minister Narendra Modi to discuss Tesla's investment expansion project.

Tỷ phú Elon Musk dự chi hàng tỷ đô, kỳ vọng Tesla bứt phá tại thị trường Ấn Độ

Elon Musk said Tesla is looking to invest in India “as soon as possible”. Photo: CNN

The billionaire also plans to meet with Indian space technology startups during his visit. Pawan Chandana, co-founder of Skyroot Aerospace, a company that launched India's first privately-developed rocket in 2022, told CNN that he will meet Elon Musk in the near future.

Elon Musk's visit could create an opportunity to discuss important issues and shape the future direction of Tesla-India relations.

Elon Musk confirmed that Tesla is planning to build a factory in the world's most populous country. According to the above sources, billionaire Elon Musk may invest between 2 and 3 billion dollars in India, mainly to build a new Tesla factory. This will benefit both Tesla and India, creating new opportunities for the country's economic development and electric car industry.

Tesla expects leapfrog growth from new market

Tesla entering the world’s largest and fastest growing economy like India would be a boon for Elon Musk and his company. While electric vehicles currently account for less than 1% of total car sales in India, it will be an attractive destination for Tesla in the coming years.

The company is facing a slowdown in major markets. In the United States, overall electric vehicle sales have slowed in recent months. While initial growth was significant, fierce competition from traditional models and limited charging infrastructure have meant demand has not picked up at the pace expected.

Similarly, in China, the world’s largest electric vehicle market, competition among domestic automakers is intensifying as some government support policies have been reduced.

Expanding operations to a new market like India can increase consumption for Tesla. Besides, this is also an important step in promoting the comprehensive development of the company on a global level, attracting new cooperation and investment opportunities for Tesla.

Investing in India could expand Tesla's consumer market. (Photo: CNN)

In the fourth quarter of 2023, Tesla lost the top spot in global electric vehicle sales to Chinese automaker BYD. However, Tesla regained the electric vehicle sales title from BYD in the first quarter of this year. This shows the fierce competition in the electric vehicle industry and the volatility in the global electric vehicle market.

In the first quarter, the company reported a decline in sales compared to the same period in 2023. This was the first major decline since the peak of the Covid-19 pandemic. Tesla is facing a number of challenges in maintaining sales.

Tesla is cutting more than 10% of its 140,000 global employees to “cut costs and increase productivity,” according to a report earlier this month. This shows that the company is adjusting its organization and costs to optimize operations and achieve better performance to overcome difficult times.

India attracts investment to become a major global manufacturing hub

In 2019, Tesla opened its first Asian factory in Shanghai, China. It has since produced hundreds of thousands of cars for the vast Chinese market and for export. If the investment in India is announced, it would be a major boost to Prime Minister Narendra Modi’s efforts to turn India into a major global manufacturing hub. This could spur the growth of the electric car industry and create more jobs, helping to boost the country’s economy.

Speaking after launching the Bharatiya Janata Party (BJP) manifesto in New Delhi on April 14, 2024, Prime Minister Narendra Modi emphasized: “We will make India a reliable global manufacturing hub through a series of programs including: simplifying regulatory processes, investing in infrastructure… bringing capital to industry and investing in research and development” .

Indian Prime Minister Narendra Modi speaks at the headquarters of the Bharatiya Janata Party ( BJP ) in New Delhi on April 14, 2024. Photo: CNN

Many major corporations around the world are now looking to diversify their operations outside of China to reduce risks and boost their supply and production, especially amid political tensions. Some of the world’s largest companies, including Apple (AAPL) supplier Foxconn, are expanding their operations significantly in India.

Multinational companies are showing interest in the Indian market and there is a growing need to invest and expand here. This expansion not only helps companies diversify their manufacturing and supply chain but also caters to the growing demands of the Indian consumer market.

Besides, in his speech, Prime Minister Narendra Modi also emphasized the desire to boost manufacturing in sectors including semiconductors and electric vehicles (EVs) by setting up nationwide EV charging infrastructure to encourage EV adoption.

While demand for electric vehicles has declined in other economies, India has set a target of 30% of all private car sales being electric by 2030. This demonstrates the Indian government’s commitment to encouraging economic diversification and the development of high-tech industries. The push for semiconductor and electric vehicle manufacturing also reflects the global trend of transitioning to sustainable clean technologies.

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