Tesla's Hunt for India Factory Site Takes It to Andhra

State has likely offered pre-acquired land at three potential locations

- Shine Jacob & Sohini Das

Elon Musk's Tesla is scouting locations for a completely knocked-down (CKD) assembly unit, despite opposition from US President Donald Trump to its plans for electric vehicle manufacturing in India, according to sources.

In recent days, Tesla has been in talks with Andhra Pradesh, which is offering pre-acquired land options in Nellore district, Sri City in Tirupati district, and close to the Kia cluster in Anantapur district, a source familiar with the discussions confirmed.

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 in talks with the multinational company, leveraging its established automotive ecosystem with global manufacturers such as Hyundai, BMW, Ford, and Tata Motors-JLR.

Tesla did not respond to queries from Business Standard.

Reports suggest the company may import vehicles from Germany before local production begins.