Automotive Giant Tesla To Set up Manufacturing Plants in India

Tesla, an automotive firm, proposes to manufacture its reasonable electric vehicle, estimated at $25,000, in India and Mexico. It could appear in 2025 or from there on, with Elon Musk announcing that these models would be manufactured at its current processing plants to use their full capacity before putting resources into new assembling lines.  

The organization operates production lines in Texas and Fremont in the US, Berlin in Germany, and Shanghai in China. By the end of the calendar year 2023, Tesla was producing 1.8 million vehicles annually. Nevertheless, its annual global capacity is 3 million vehicles.

During the earnings call, Musk mentioned that the company anticipates increasing production by 50% by 2023. This indicates that most of its capacity will have been utilized by the end of 2024, with some capacity remaining through 2025.

This timetable aligns well with the government's new policy on electric vehicles, which requires the establishment of a manufacturing plant in India within three years and through 2027. Additionally, it is in line with Tesla's announcement during Tuesday's earnings call that it will begin selling new models in mid-2025.

During the earnings call, Musk said that “the new vehicles, including the more affordable models, will be able to be produced on the same manufacturing lines as our current vehicle lineup”.

He acknowledges that this strategy may not reduce costs as much as anticipated. Still, it will enable Tesla to fully utilize its current capacity of 3 million vehicles, facilitating a 50% increase in production over 2023 "before investing in new manufacturing lines."