Bengaluru: Karnataka Chief Minister BS Yediyurappa on Saturday said that American car maker Tesla will set up an electric car manufacturing unit in Karnataka. The statement was a part a list of benefits promised to Karnataka in the Union Budget.
“American firm Tesla will open an electric car manufacturing unit in Karnataka,” Yediyurappa said via the statement. Last month, Tesla registered its subsidiary Tesla India Motors and Energy Private Limited and listed three directors for the company. It was incorporated in Bengaluru and its directors are Vaibhav Taneja, Venkatrangam Sreeram and David Jon Feinstein. Taneja is the Chief accounting officer of Tesla.
At the time of the announcement, Chief Minister BS Yediyurappa tweeted that the electric car maker would open an R&D unit in Bengaluru but the tweet was quickly deleted. Following this, Gaurav Gupta, Additional Chief Secretary, Commerce and Industries in Karnataka told TNM that the timeframe and manner in which Tesla will operate in India is yet to be decided.
He said that Tesla’s announcement followed months of correspondence between the state government and the electric car manufacturer. Tesla was in contact with five state governments in India including Andhra Pradesh, Tamil Nadu and Maharashtra.
In January 2021, Elon Musk briefly became the world’s richest person when his net worth grew to over $185 billion. He runs multiple companies including Tesla, SpaceX, The Boring Company, OpenAI and Neuralink. The electric car maker Tesla is based in Palo Alto, California. Musk has tweeted several times about the company’s impending foray into India.
In December, the Tesla CEO confirmed in an exchange on Twitter that Tesla will launch in the country in 2021. India has been keen to reduce its oil dependence and cut down on pollution, but its efforts to promote electric vehicles have been stymied by a lack of investment in manufacturing and infrastructure such as charging stations.
To boost investment, India plans to offer $4.6 billion in incentives to companies setting up advanced battery manufacturing facilities, Reuters reported last year.