Tesla CEO Elon Musk is considering establishing a manufacturing unit in India for electric vehicles (EVs) and is set to visit the country to discuss potential factory sites and investments.

India's central government has implemented a liberal EV policy, which is being further sweetened by state-level incentives to attract foreign investment in the EV sector.

States such as Gujarat, Maharashtra, Telangana, and Tamil Nadu are actively competing to secure Tesla's investment.

The EV policy includes benefits like a concessional import duty of 15% for global EV companies that commit to investing at least $500 million in manufacturing within India.

Tesla is required to set up a manufacturing facility and commence commercial production of EVs within a three-year period as per the policy guidelines.

The company is planning site assessments in India for a potential $2 billion manufacturing facility investment.

Tesla is also expanding its market reach to South America, with a particular interest in Chile due to its significant lithium resources, despite facing global challenges such as declining sales and increasing competition.