Shareholders of the electric vehicle (EV) manufacturer Tesla Inc TSLA enjoyed a strong 2023, considering the stock was up over 140%. The Austin, Texas-based company might start 2024 with a bang with an official expansion into India.
What Happened: According to The Hindustan Times, the announcements will likely come at the Vibrant Gujarat Global Summit, set to be held Jan. 10 through Jan. 12.
Tesla CEO Elon Musk will reportedly make an appearance at the event, which celebrates its 10th anniversary.
Musk has promised a trip to India in 2024 and said earlier this year that he was looking forward to visiting the country.
Indian Prime Minister Narendra Modi visited the U.S. and met with Musk this past summer. Since then, rumors have been heating up around Tesla's plans for the Indian market.
For years, the company has been critical of the high import duties on vehicles, which Musk considered a dealbreaker.
But after Modi's visit, Musk said Tesla would make "significant" investments in India. Rumors are that Tesla could spend around $2 billion on its initial plans for operations in the country, including a manufacturing facility to be built in Sanand, a major industrial hub in Western Indian.
Other states are also reportedly vying for Tesla's potential manufacturing facility.
Benzinga has contacted Tesla for comment on the reports of the automaker’s activity in India.
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Why It's Important: Tesla has gigafactories in the U.S. and several international manufacturing facilities in Germany and China. There are also plans for a new facility in Mexico.
Adding a large-scale Indian operation could help the company tackle the heavily populated market and also have another manufacturing hub to export vehicles to other countries.
The Associated Press reported that India is one of the fastest-growing markets in the world for EVs. Once known as a popular place for two or three-wheel vehicles, lower prices for EVs have helped increase adoption rates in the country. EVs are now often cheaper than other vehicle options in India, too.
India has been encouraging EV manufacturing and offering discounts for customers to make the switch. The focus is part of the country's overall plans for clean energy and a goal of net-zero emissions by 2070.
TSLA Price Action: Tesla shares trade at $261.44 versus a 52-week trading range of $101.81 to $299.29.
Read Next: Here’s How Many Vehicles Tesla Has Delivered, Produced In Each Quarter Since 2019
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