Elon Musk will speak with PM Modi at U.S. meeting to discuss Tesla’s (TSLA) India investment plans

Reuters reports, citing unnamed sources, that Tesla (NASDAQ: TSLA) CEO Elon Musk will meet directly with Indian Prime Minister Narendra Modi on Tuesday to brief the leader on plans to set up a manufacturing base in the country.

According to the unnamed source, the inaugural high-level meeting to discuss the expansion will occur as part of the Prime Minister’s state visit to the U.S.

Musk will discuss investment plans and outlook with Modi, the source said, describing the planned discussion as a "high-level meeting about India's economic potential".

"Tesla has very strong plans for India, including looking at manufacturing," the person added.

Musk has been trying to enter the Indian market for a while now, even setting up two Tesla subsidiaries in early 2021. However, he faced major hurdles due to the crazy high import duties on electric vehicles, which can reach as high as 100%.

Last month, representatives from the U.S. automaker paid a visit to India and held talks with Indian bureaucrats and ministers on establishing a manufacturing base for cars, and the production of batteries in India.

The significance of Modi's meeting with Musk is heightened as it will take place just days after Twitter co-founder Jack Dorsey accused India of threatening to shut down the platform for non-compliance with content takedown requests during a protest spanning 2020 and 2021. Musk purchased the social media platform in October of last year for $44 billion. In response, India vehemently denied the accusation, labeling it an "outright lie".

Shares of TSLA are up 3.89% in afternoon trading on Tuesday.

By Michael Elkins | [email protected]

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