Most of us are well aware of the American company Tesla but a more standard introduction would be that Tesla, inc. is an electrical vehicle and clean energy company based in Paulo Alto, California. Tesla’s current products include electric cars, battery energy storage from home to grid scale, solar panels and solar roof tiles. Tesla is ranked as the World's best-selling plug-in and battery electric passenger car manufacturer, with a market share of 16% of the plug-in segment and 23% of the battery electric segment 2020 sales.





As more and more nations are moving towards becoming carbon neutral The electrical vehicle industry in India is about to grow at a rapid pace. The central and state government have launched schemes and incentives to promote electric mobility in the country and some regulations and standards are also in place.

Union road transport Minister Nitin Gadkari stated that, he believes, “ India will be a manufacturing hub for electric vehicles within the next five years, adding that several countries do not want to deal with China after the COVID-19 crisis, which can be an opportunity for India.” The Minister asked Indians automotive companies to boost their electric vehicle technology and also to focus on finding alternatives to lithium-ion battery tech to help make India the next global manufacturing hub for electric vehicles.



Tesla will introduce their products in India and set up outlets. There are ongoing talks for a R&D centre in Karnataka but a manufacturing facility is not part of the immidiate course of action. Cupertino, US-based Tesla is also likely to open retail outlets in other large cities in India depending on demand potential for its vehicles.
According to Karnataka Chief Minister BS Yediyurappa, “US carmaker Tesla will set up a car manufacturing unit in the state, and that an industrial corridor would be developed in Tumakuru, creating 2.8 Lac jobs.
In 2021-22, infrastructure development at a cost of Rs. 1.16 crore would take place in the state and Rs. 14,788 crore would be released for the second phase of the Metro Rail work. The chief Minister said an industrial corridor would be developed in Tumakuru at an investment of Rs. 7,725 crore creating 2.8 lac jobs. Hailing the Union Budget presented recently as historic, Yediyurappa said it would pave the way for a $5 trillion economy by 2025.

Potential challenges for Tesla:

  • Production Deadline- This is by far the biggest hurdle. By setting highly ambitious production goals, Elon Musk has succeeded in making headlines and getting investors excited, but this also means that is Tesla struggles to meet its goal of delivering 500,000 thousand vehicles this year, it could be in trouble.
  • Managing spending- Tesla has burned through cash before and fast - around $1 billion per quarter. True, a lot of this cash is invested in potentially profitable projects such as the battery gigafactory, and yet, this level of spending leaves the company in a tight spot.
  • Keeping the personnel stable- There have been major executive walkouts from the company, including some members of the finance team. There are also questions regarding Elon Musk’s ongoing role. This is not something investors like to hear during challenging times.
  • Dealing with competition- Many of the leading brands in the auto industry are finally investing big in electric vehicles. Tesla’s luxury vehicles already face major competition from vehicles such as Chevy Bolt, and when more affordable cars appear, the impact could be substantial.