As the “Tesla in India” buzz grows on social media, Andhra Pradesh is actively courting the electric vehicle giant to set up operations in the southern region. However, skepticism has also arisen, especially after Elon Musk’s India entry reportedly ‘irked’ U.S. President Donald Trump, prompting a public remark from him.
Recent media reports have indicated that Tesla has been in discussions with Andhra Pradesh, which has offered pre-acquired land in multiple locations. The state has emphasized its infrastructure readiness, including port connectivity, to facilitate Tesla’s entry.
How Andhra Pradesh Is Preparing
According to various news reports, the state government’s Economic Development Board (EDB) has made a pitch with its port connectivity and abundant land to attract Elon Musk’s Tesla. The ruling party of the state, Telugu Desam Party (TDP), initiated talks with Tesla in October 2024. Minister Nara Lokesh met the company’s Chief Financial Officer, Vaibhav Taneja, during his visit to the U.S.
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As Tesla’s hiring spree begins in India following Prime Minister Narendra Modi’s meeting with Elon Musk, Andhra Pradesh has renewed its efforts to attract the company.
Andhra Pradesh’s Key Attractions To Woo Tesla
The key attraction that Andhra Pradesh is offering to Tesla is the set of incentives including ready land parcels. The initial plan include the company to import readymade cars. After which they will gradually set up a manufacturing facility. The state have also highlighted the south’s massive presence in the EV four-wheeler sales in India. EV states statistics show that about 60% of EV car sales are in the four southern states of Kerala, Telangana, Tamil Nadu and Karnataka.
This isn’t the first time the state government has reached out to Tesla. Back in 2017, then-Chief Minister Chandrababu Naidu signed a memorandum of understanding with the company, and Elon Musk had pledged to share Tesla’s technological expertise to help set up two 4 MW solar energy storage units in Rayalaseema.
Earlier, Maharashtra and Gujarat were also under consideration, but sources indicate Tesla is reluctant to engage in land acquisition and rehabilitation. Tamil Nadu has also been trying to Elon Musk and Tesla.
