Andhra Pradesh Makes Bold Bid to Host Tesla Manufacturing Plant


4/15/20242 min read

In a strategic move to attract investment and bolster its presence in the electric vehicle (EV) sector, the Government of Andhra Pradesh has extended a formal invitation to Tesla, the renowned US-based EV giant, to establish a manufacturing facility within the state.

Sources reveal that the Andhra Pradesh administration has proactively reached out to Tesla, dispatching two official communications inviting the company's management to survey potential sites for the proposed manufacturing plant. The initiative comes amidst Tesla CEO Elon Musk's upcoming meeting with Prime Minister Narendra Modi scheduled for April 22, igniting hopes for fruitful discussions on potential investments in India.

The state government, keen on showcasing its readiness and commitment, has assured Tesla of abundant land resources across various districts. Notably, Andhra Pradesh has proposed several locations, strategically situated in proximity to key urban centers like Chennai, Bengaluru, and the Krishnapatnam Port. Suggestions include the vicinity of the Kia plant in Anantapur district, close to Bengaluru, as well as locations near Naidupet and Sri City, catering to connectivity with Chennai and Krishnapatnam Port.

A senior government official reiterated the state's eagerness to accommodate Tesla's requirements, emphasizing flexibility in land acquisition, even if it entails purchasing from private entities. The proposed land allocation for the Tesla facility is estimated to exceed 2,500 acres, underlining the magnitude of the envisioned project.

However, amidst the ongoing general elections and adherence to the Model Code of Conduct (MCC), any concrete developments regarding the Tesla plant's location are expected to unfold post-elections. While Elon Musk's meeting with Prime Minister Modi is anticipated to spark discussions on various fronts, formal announcements regarding investment destinations might be deferred due to electoral regulations.

This recent overture by the Andhra Pradesh government marks a renewed effort to court Tesla, following previous invitations extended in 2021 and 2022. The state's proactive stance underscores its ambition to emerge as a frontrunner in India's rapidly evolving EV landscape.

Interestingly, Andhra Pradesh finds itself in competition with other Indian states, including Maharashtra, Gujarat, and Telangana, all vying to secure the coveted Tesla manufacturing plant. The heightened interest from multiple state governments underscores the significance of Tesla's potential entry into India's burgeoning EV market.

As anticipation builds surrounding Elon Musk's visit to India and subsequent discussions with key stakeholders, the outcome holds the promise of reshaping India's automotive industry landscape, ushering in a new era of sustainable mobility and economic growth.