Elon Musk eyes Gujarat as prime location for Tesla factory, reveals minister

Dispelling recent speculations, Patel revealed that active communication is underway between the state government and Tesla, with both parties seemingly inclined towards a positive outcome.

NEW DELHI | Updated: 30 December, 2023 3:04 pm IST

Rushikesh Patel recently expressed optimism about Tesla setting up a plant in Gujarat

NEW DELHI: On Thursday, Gujarat’s Health Minister Rushikesh Patel recently expressed optimism about Tesla, the electric vehicle giant, choosing the state for its upcoming manufacturing plant.

Dispelling recent speculations, Patel revealed that active communication is underway between the state government and Tesla, with both parties seemingly inclined towards a positive outcome.

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“The state government is very hopeful of Tesla coming to Gujarat. Even Elon Musk is looking at Gujarat as his first choice. Gujarat has been on his radar since he initiated a survey in India to identify a suitable location for the plant,” Patel said during a press briefing in Gandhinagar.

“Perhaps, very soon, an official announcement will be made in this regard. Let us hope Tesla comes to Gujarat. We will certainly welcome it and provide all necessary support, just as we did for Tata, Ford, and Suzuki in the past.”

Highlighting the ongoing communication with Tesla, Patel suggested that recent reports about the firm’s potential factory in the state are a direct result of these discussions.

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In June, Tesla’s CEO Elon Musk had a high-profile meeting with Prime Minister Narendra Modi in New York. Following the meeting, Musk announced his plans to visit India in 2024, indicating the company’s keen interest in expanding its footprint in the country.

In September, S J Haider, Additional Chief Secretary of Gujarat’s Industries and Mines Department, disclosed that the central government is actively engaging with Tesla to explore the feasibility of establishing a manufacturing facility in India. Haider emphasised Gujarat’s aspiration to play a pivotal role in Tesla’s future plans, promising a proactive approach at the opportune time.

Adding to the anticipation, Commerce and Industry Minister Piyush Goyal recently shared that Tesla is eyeing component sourcing worth around $1.9 billion from India in 2023, signalling a substantial increase from the previous year’s $1 billion.