Elon Musk plans to announce an investment of up to $3 billion to build a new factory in India during his visit to New Delhi next week. At the same time, the company is preparing to launch a megafactory in Shanghai.

Tesla CEO Elon Musk is ready to announce an investment of up to $3 billion in India to build a new factory, according to two sources close to the discussions. During his visit to New Delhi next week, Musk will meet Prime Minister Narendra Modi to present Tesla's plans to enter the world's third-largest automotive market, where adoption of electric vehicles is still in its early stages.

In parallel, Tesla plans to launch its new megafactory in Shanghai in May, designed to produce 10,000 Megapacks per year. This will be Tesla's first energy storage factory outside the United States and is expected to reach mass production in the first quarter of 2025. Megapacks are high-capacity batteries that offer energy storage and backup to stabilize the electrical grid and prevent interruptions.

Although the electric vehicle market in India is still small, it is growing and is dominated by Tata Motors. In 2023, electric vehicles accounted for just 2% of total car sales, but the government aims for 30% of new vehicles to be electric by 2030. This investment by Tesla in India comes at a time when the company faces a slowdown in sales in the United States and China, announcing recent layoffs affecting 10% of its workforce.

Details of Musk's visit to India are being kept under wraps, with the CEO confirming only through his X social media platform that he will meet Modi.

Tesla broke ground on its Shanghai gigafactory in January 2019, becoming the first factory by a foreign automaker in China under a new policy allowing full ownership. The plant demonstrated remarkable efficiency, delivering its first batch of vehicles produced in China in less than a year.