Tesla (TSLA) to resume factory talks and plans for $24k car with India commerce minister

Reuters reports Monday, citing a person with direct knowledge of the matter, that Tesla (NASDAQ: TSLA) representatives are set to meet India’s commerce minister this month.

According to the person, the meeting will take place to discuss plans for the automaker to build a factory in the country to build, what the company describes as, an all-new $24,000 car.

Tesla had shown interest in establishing a factory in India for manufacturing affordable EVs. However, progress on this initiative faced obstacles as the government declined to lower import taxes on their vehicles. A meeting with the country’s commerce minister marks the highest level of engagement between the electric car giant and the Indian government since June, when CE, Elon Musk met with India's Prime Minister Narendra Modi, expressing his intent to make a substantial investment in the country.

The $24,000 target price for the new Tesla vehicle, which was reported earlier this month by The Times of India newspaper, would be 25% cheaper than its current lowest priced offering, the Model 3 sedan which sells for the equivalent of just over $32,200 in China.

According to the unnamed sources, talks with Indian government officials in New Delhi are planned to resume this month. Tesla delegates are scheduled to meet with Indian Commerce Minister, Piyush Goyal, to focus on establishing an EV supply chain and explore options for factory land allocation.

Shares of TSLA are down 1.20% in pre-market trading on Monday.

By Michael Elkins | [email protected]

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