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Tesla Model 2 Production: Elon Musk’s Ambitious Venture into India!

The excitement is palpable as Elon Musk, the visionary CEO of Tesla, sets his sights on expanding the company’s electric vehicle (EV) empire to India. At the recent annual shareholder meeting, Musk tantalizingly teased two new products in the pipeline, with one of them speculated to be the long-awaited ‘Model 2’ – an entry-level Tesla that promises to make electric driving accessible to a wider audience by significantly lowering the cost-of-entry.

Recent reports from Reuters reveal that Tesla is engaging in a fresh round of talks with Indian government officials in New Delhi. The primary focus of these discussions is to establish a manufacturing base for both cars and batteries in India. As the world’s third-largest automotive market, India holds immense potential for Tesla’s EV ambitions.

It’s worth noting that in 2022, Tesla attempted to persuade the Indian government to reduce import taxes on EVs. However, the administration expressed its preference for a commitment to local manufacturing. Undeterred, Tesla is now eyeing the prospect of building a factory in India, dedicated to producing low-cost electric vehicles for both the domestic market and export.

Photo by Moritz Kindler on Unsplash

According to insiders, Tesla aims to project its supply footprint across the Indo-Pacific region, with an annual capacity expected to reach approximately half a million vehicles. This bold move aligns with Musk’s long-standing vision of creating a mass-market, entry-level Tesla. As early as 2020, he articulated his dream of making affordable EVs a reality and targeted a three-year timeline for the launch of such a model.

The potential in India’s domestic market for budget-friendly Teslas is immense, given that electric vehicles presently constitute less than two percent of new vehicle sales in the country. By manufacturing within India, Tesla can cater directly to the local demand, amplifying its presence and impact on the rapidly evolving Indian automotive landscape.

Musk expressed his commitment to invest significantly in India during his meeting with Prime Minister Narendra Modi in New York earlier this year. This gesture reaffirms Tesla’s dedication to exploring new frontiers and reshaping the global electric vehicle market.

Tesla’s upcoming discussions in India are set to involve influential figures like Commerce Minister Piyush Goyal. The scope of these talks is expected to encompass various aspects, including supply chain infrastructure and potential factory locations. Tesla’s next-generation EV platform holds the promise of reducing production costs significantly, thanks to a simplified chassis that will underpin multiple new models.

The construction of Tesla’s ‘Gigafactory’ in Monterrey, Mexico, is set to begin, adding to the existing manufacturing facilities in California, Texas, Berlin, and Shanghai. This new Gigafactory, built around the lower-cost, high-volume platform, forms a crucial pillar of Tesla’s operating model.

Photo by Austin Hervias on Unsplash

As Musk envisions a starting price of approximately US$25,000 for the ‘Model 2,’ a direct currency conversion would translate to around AU$37,500. If this holds true, the ‘Model 2’ could become Australia’s most affordable electric car, undercutting other budget-focused offerings like the BYD Atto 3, GWM Ora Cat, and MG4.

With its accessible price point, the ‘Model 2’ is poised to find a sweet spot below the existing Tesla Model 3, which already holds the distinction of being Australia’s most popular EV.

In conclusion, Tesla’s expansion into India represents a pivotal moment in the EV industry. By manufacturing low-cost electric vehicles within India, Tesla can tap into the country’s burgeoning automotive market and make significant strides toward a greener, electrified future for all. The ‘Model 2’ promises to be a game-changer, and its affordability is expected to bring the joy of emission-free driving to a wider audience, both in India and beyond.



  1. What is Elon Musk’s latest venture with Tesla? Elon Musk is exploring the establishment of a manufacturing base for cars and batteries in India, with a particular focus on producing low-cost electric vehicles for the local market and exports.
  2. Why is India significant for Tesla’s expansion plans? India is the world’s third-largest automotive market, holding immense potential for Tesla’s electric vehicles.
  3. What is the expected annual capacity of Tesla’s manufacturing base in India? Tesla’s manufacturing base in India is projected to have an annual capacity of around half a million vehicles, serving the Indo-Pacific region.
  4. What is the price range of Tesla’s upcoming ‘Model 2’ electric car? Elon Musk has hinted at a starting price of around US$25,000 for the ‘Model 2’, making it potentially Australia’s most affordable electric car.
  5. How does Tesla plan to reduce production costs for its next-generation EVs? Tesla’s next-generation EV platform aims to halve production costs through the use of a simplified chassis that can underpin multiple new models.
Carstyle Team
Carstyle Team
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