Elon Musk's Tesla holds off on India investment announcement at Vibrant Gujarat Global Summit

The much-anticipated investment plans by Tesla led by billionaire entrepreneur Elon Musk, foray into India won't be unveiled at the Vibrant Gujarat Global Summit, as confirmed by a government official.

Rahul Gupta, Managing Director of Gujarat Industrial Development Corporation, clarified on Wednesday that Tesla won't be disclosing its investment intentions during the summit. "It is the prerogative of any company to decide where to invest. The government of Gujarat will be more than happy to facilitate them," Gupta stated in response to queries regarding Musk's potential announcement.

Speculation had been rife that Musk might use the investor summit as a platform to declare plans for establishing a manufacturing hub for Tesla vehicles in Gujarat. Emphasizing Gujarat's appeal as an investment destination for electric vehicles, Gupta underlined, "Gujarat continues to be the most preferred investment destination for the electric vehicle sector."

The discussions regarding Tesla's potential manufacturing facility in India were initiated during Prime Minister Narendra Modi's visit to the United States in mid-June 2023, as indicated by Foreign Secretary Vinay Kwatra. Since then, ongoing negotiations have surfaced, with Tesla expressing an interest in investing up to $2 billion to set up an electric vehicle factory within the country's borders.

However, a significant point of contention revolves around Tesla's plea for concessional import duties, seeking approximately 15% to 20% relief on car imports for at least the initial two years of operations.

Despite the postponement of any official announcement at the Vibrant Gujarat Global Summit, the conversations between Tesla and Indian authorities remain ongoing. Tesla's potential entry into India holds considerable promise, yet the specifics of its investment plans and potential facilities in the country remain pending.

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