Elon Musk, CEO and product architect of Tesla, who has been recently announced as ‘the world’s richest man’, had tweeted a reply just recently last year in December, saying that Tesla will come to India “Next year for sure”. Standing true to his words, Tesla has entered India and has registered with the Registrar of Companies (RoC) in Bangalore, under the name of Tesla India Motors and Energy Private Limited.
On this occasion, the chief minister of Karnataka B.S. Yediyurappa tweeted, “Karnataka will lead India’s journey towards Green Mobility. Electric Vehicle Manufacturer Tesla will soon start its operations in India with an R&D unit in Bengaluru. I welcome Elon Musk to India and Karnataka and wish him all the very best.”
The company has appointed three directors David John Feinstein, Vaibhav Taneja, and Venkatrangam Sreeram. According to reports, the registration of Tesla India Motors and Energy Private Limited took place on January 8 and the registered office is located at Lavelle Road, which is a business district in Bangalore. The paid-up capital of the entity is one lakh rupees and the authorized capital is fifteen lakh rupees, which is also registered as an unlisted company according to an RoC filing.
Tesla will also open a research and development (R&D) center in Bangalore and if required, the company will also be provided with space to build a factory in the near future. Last year, Nitin Gadkari, the Union road transport and highways minister, had said that Tesla will undertake assembly and manufacturing of electric cars after it starting its operations in India with sales. A list of locations has already been provided by the government of Karnataka, Tumkur being one of them, to set up Tesla’s manufacturing facility.
In December 2020, Gadkari had also said that the Tesla Model 3, which is one of the cheapest vehicles of the company, will be the first one to be launched in India. The price of the Tesla Model 3 will start from around INR 55,00,000 and the bookings will start from January 2021.
“Tesla’s China factory may work as the primary sourcing point initially. Tesla may start assembling vehicles in India after visible demand”, said a government official to CNBC-TV18, hinting that Tesla might not set up a manufacturing plant in India so soon.
States like Maharashtra, Tamil Nadu, Gujarat, Andhra Pradesh are also considering partnering with Tesla, and reportedly, Tesla is in talks to start operations with these states including Karnataka.
The entry of Tesla will also help in materializing PM Narendra Modi’s primary goals of the promotion of electric cars in India. Although Tesla has not imparted information about the time, date, and other details of Tesla India Motors and Energy Private Limited, the registration of the entity itself is very promising for India.
Gaurav Gupta, the state principal secretary for commerce and industries, said, “We have been interacting with Tesla for the last few months, and it is a happy news that it has decided to incorporate its company here. We have impressed upon them that Bengaluru is not only the technology capital but also the aerospace and space capital. For any kind of technology collaboration, it has the right kind of talent pool,…How they want to enter and take it forward is left to their judgment. Hopefully, this will lead to a sales office, research, and further developments as necessary.”