Karnataka Is Now Interested In Elon Musk's Tesla

Karnataka entered a growing list of Indian states pursuing Tesla founder Elon Musk to open a manufacturing facility on Tuesday.

Industries Minister Murugesh Nirani explained in a tweet that Karnataka has developed as India's EV hotspot, with over 400 R&D centres, 45+ EV startups, and an EV cluster near Bengaluru. He addressed Elon Musk by saying that Karnataka would be an excellent location for a Tesla factory. Tesla chose his first address in India to set up in Bengaluru. While Musk replied to a user asking on the developments of establishing Tesla in Inda, he said that "still working through a lot of challenges with the government," reported The Deccan Herald.

Karnataka has now joined Telangana, West Bengal, Maharashtra, Punjab, and Tamil Nadu in welcoming Musk to India after the Tesla CEO stated that entering the nation would be difficult.

Tesla registered its subsidiary Tesla India Motors and Energy Private Ltd in Bengaluru in January of last year. B S Yediyurappa, the state's then-chief minister, had tweeted that the electric vehicle company would establish a research and development centre in the state capital. The tweet, though, was shortly deleted. While, in another statement released in February 2021, Yediyurappa stated that American firm Tesla will open its electric car manufacturing unit in Karnataka.

Whereas the Texa-based manufacturer had plans to sell its eco-friendly cars in India for some time, the substantial import charges that India imposes on fully completed cars are said to be a hindrance.

Meanwhile, the tariff on fully manufactured electric vehicles costing $40,000 or less is 60%, while it rises to 100% for vehicles costing more. Tesla understandably believes that the premium price will deter the budget-conscious Indian buyer.