AP Pulling Out All Stops To Get Tesla

Visakhapatnam: Buoyed by its success in getting commitment from BPCL for its Rs95,000-crore refinery and petrochemical complex at Ramayapatnam and ArcelorMittal-Nippon India on Rs1.4 lakh-crore steel plant near Anakapalle, the Andhra Pradesh Government has intensified lobbying to make a strong pitch to woo electric vehicle (EV) manufacturing giant Tesla to set up its production unit in the State with an irresistible offer of a pre-approved land of its choice, a slew of incentives and infrastructure support.

Official sources told Bizz Buzz that the government has given Tesla the options to choose several land parcels out of 15,000 acres acquired by APIIC for the Visakhapatnam-Chennai Industrial Corridor in Tirupati and Nellore districts, in addition to Anantapur district where Kia Motors operates a plant. Besides Ramayapatnam, lands near Krishnapatnam Port and Sri City have been offered as they have close proximity to Chennai. Due to the automobile ecosystem developed by Isuzu Motors at Sri City, a site nearby will also be an added advantage.

Tesla owner Elon Musk has ignited the hopes of rolling out affordable variants in future with indications that the company wants to produce cheaper versions of Model 3 and Y and a new model called Model 2.

At present, Andhra Pradesh is locked in a fierce fight to convince Tesla management to set up their manufacturing unit in India with Maharashtra, Gujarat and Tamil Nadu. Telangana has recently joined the race to woo Tesla.

IT, Electronics and Education Minister Nara Lokesh, during his recent visit to the United States in October last year, met and made a strong plea to Tesla Chief Financial Officer Vaibhav Janeja to set up a unit in Andhra Pradesh. A unit in India will help Tesla sell more cars in the fast growing EV market in India and its neighbourhood. Maharashtra is bidding for Pune as Tesla has its office in that city.

Even as claims are being made by various States on convincing Tesla to come to their State, AP Minister for Labour and Employment V Subash in a posting on X, said “Chandrababu brought Kia, Lokesh garu Tesla. Kia is ours. Tesla too.”

After his visit to Tesla office in the United States, Lokesh stated on X “Visited @Tesla HQ in Austin and pitched Anantapur as the perfect spot for Tesla’s EV and battery units! Had an inspiring discussion with CFO Vaibhav Taneja about transforming Andhra Pradesh into an EV manufacturing hub. Under the visionary leadership of Hon’ble CM @ncbn Garu, we’re targeting 72GW of renewable energy by 2029. Ready to lead the green energy revolution and eager to collaborate with global innovators like Tesla to make it happen!”