Elon Musk to meet PM Modi to discuss investment plans

Elon Musk is set to visit India this month to meet Prime Minister Narendra Modi and reveal his investment plans, including opening a new factory in the country, according to two sources familiar with the matter.

The Tesla CEO will meet Modi in New Delhi during the week of April 22 and is expected to announce his intentions for India separately. Musk will be joined by other executives from Tesla during his visit. Although neither Modi's office nor Tesla has commented on the trip, Reuters was the first to report these details. Musk's plans for the India trip could still change.

This visit follows previous discussions between Musk and Modi in New York last June, during which Tesla advocated for lower import taxes on electric vehicles in India. India recently unveiled a new EV policy reducing import taxes to 15% from 100% on certain models if a manufacturer invests at least $500 million and establishes a factory in the country.

Tesla officials are also expected to explore potential manufacturing sites during their visit this month, with an estimated investment of around $2 billion. Additionally, Tesla has initiated production of right-hand drive cars at its German plant for export to India later this year.

Musk has expressed his belief that India should embrace electric cars, aligning with Tesla's mission to expand its presence in the Indian market. This move comes as Tesla faces slowing demand in its main U.S. and Chinese markets, coupled with increased competition from Chinese automakers. While India's EV market is currently small, it is growing steadily, with the government aiming for EVs to constitute 30% of total car sales by 2030.