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Andhra Pradesh has ramped up its efforts to attract Elon Musk’s Tesla to establish a much-anticipated electric vehicle (EV) manufacturing facility in the southern part of the state.
According to sources, the state’s Economic Development Board (EDB) has positioned Andhra Pradesh as an ideal destination for Tesla, emphasising its strong port connectivity and availability of land. Discussions with the EV giant began in October 2024, when state minister Nara Lokesh met Tesla’s Chief Financial Officer Vaibhav Taneja during his visit to the U.S.
Following Prime Minister Narendra Modi’s meeting with Musk and Tesla’s ongoing hiring spree in India, Andhra Pradesh has renewed its push to secure the investment. The state has curated an attractive package of incentives, including readily available land parcels, to differentiate itself from other contenders seeking Tesla’s attention. Initially, the company may focus on importing cars before setting up a full-fledged manufacturing unit.
A source stated that the port access will help the company in importing cars. Also, if it sets up a manufacturing plant in southern Andhra Pradesh, there is a ready-made ecosystem of auto companies, battery manufacturers, and ancillary suppliers here.
Andhra Pradesh is also highlighting South India’s significance as a key market for EVs, accounting for nearly 60% of the country’s four-wheeler EV sales, with strong demand in Kerala, Telangana, Tamil Nadu, and Karnataka.
This is not the first time the state has sought to bring Tesla on board. In 2017, then-Chief Minister N. Chandrababu Naidu signed a memorandum of understanding with Tesla, with Musk committing to provide technological expertise for two solar energy storage units in Rayalaseema.
