As discussions about Tesla’s entry into India intensified, Andhra Pradesh has actively positioned itself as a prime location for the electric vehicle (EV) giant’s operations. However, scepticism has also surfaced, especially after reports suggested that Elon Musk’s move into India has drawn the attention of former U.S. President Donald Trump, leading to a public remark from him.

AP Offers Infrastructure Readiness 

Recent reports indicate that Tesla has been in discussions with the Andhra Pradesh government, which has put forward multiple pre-acquired land parcels as potential sites for the company’s operations. The state is emphasising its infrastructure capabilities, particularly its port connectivity, to support Tesla’s potential entry. The Andhra Pradesh Economic Development Board (EDB) has taken the lead in pitching the state as an ideal destination for Tesla. With robust port infrastructure and vast land availability, the ruling Telugu Desam Party (TDP) initiated talks with Tesla back in October 2024. During his visit to the U.S., state minister Nara Lokesh met Tesla’s Chief Financial Officer, Vaibhav Taneja, to advance discussions on the potential investment.

Why Andhra Pradesh? 

One of the key advantages Andhra Pradesh is offering Tesla is a package of incentives, including readily available land. The initial plan is for Tesla to import completely built units (CBUs) before gradually establishing a manufacturing facility in the state. Additionally, Andhra Pradesh has highlighted South India’s dominance in EV four-wheeler sales. Reports indicate that nearly 60 per cent of India’s EV car sales are concentrated in four southern states—Kerala, Telangana, Tamil Nadu, and Karnataka—making the region a strategic location for Tesla’s expansion.

Competition from Other States

Andhra Pradesh is not the only state vying for Tesla’s attention. Previously, Maharashtra and Gujarat were considered potential locations. However, reports suggest Tesla is hesitant to navigate the complexities of land acquisition and rehabilitation in these states. Tamil Nadu has also expressed interest in attracting the company, reinforcing South India’s appeal as a major EV hub.