Elon Musk-led Tesla to open Production unit in Karnataka

• The announcement was made by Karnataka Chief Minister BS Yediyurappa.
• Last year, Nitin Gadkari had confirmed the Tesla launch in India.
• Earlier in September 2020, The company was engaged with the Industrial Department of Karnataka to set up its R&D center in Bengaluru.

Elon Musk-led electric car maker company Tesla will open its first production unit in Karnataka, according to the statement given by Karnataka Chief Minister BS Yediyurappa.

In a view to appreciate the benefits for the southern India states announced by the Finance Minister Nirmala Sitharaman under the Union Budget 2021, CM Yediyurappa said that Tesla would open its first manufacturing unit in Karnataka state, PTI reported.

Last month, Tesla had registered a subsidiary named Tesla India Motors and Energy Pvt. Ltd in Bengaluru. According to the Registrar of Companies (RoC) filings data, Tesla India Motors and Energy's registered office is located in Lavelle Road, Bengaluru, with a paid-up capital of Rs 1 lakh and authorized capital of Rs 15 lakh.

In December last year, Nitin Gadkari, the Union road transport and highways minister, had confirmed the Tesla launch in India. According to Gadkari, Tesla will launch its electric cars in mid-2021. "Tesla will start operations first with sales and then maybe look at assembly and manufacturing based on the response to the cars," he said.

In September 2020, Tesla said that it is in talks with the Karnataka government to set up its R&D (Research & Development) center in Bengaluru to leverage the availability of relatively cheap technical expertise in India’s technological capital city Bengaluru.

Since the government started focusing on increasing electric car usage in India, many car manufacturers such as Hyundai, Tata, Mahindra, and MG have launched their electric car models in India.

According to the media reports, Tesla is likely to enter the Indian market with its Model 3 variant ranging between Rs 50 lakh to Rs 60 lakh.

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