In a post on X, Tesla CEO Elon Musk announced he’ll be visiting India the week of April 22, to meet with prime minister Modi to discuss setting up a Tesla gigafactory and investments of about $2-$3 billion. Following a Tesla lobby, India agreed to lower import taxes on some electric vehicles from 100% to 15% in exchange for the company investing at least $500 million in setting up a factory in the country. It is hoped the investment in India will enhance the Tesla’s share price and market capitalization as it has been facing challenges lately. At full capacity, the factory is expected to produce about 500,000 electric vehicles per year and the cars will sell for a low cost of $24,000 each.

Why India? Perhaps because of the country’s vast market size (1.2 billion people) and available skilled labor.