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Tesla develops plan to produce and market battery storage systems in India

Elon Musk’s pursuit of entering the Indian market has led to Tesla’s development of plans for the production and promotion of battery storage systems in India. These plans include the submission of a proposal to officials who are exploring incentives to establish such a facility, as reported by two individuals familiar with the matter, according to Reuters.

For several weeks, Tesla officials have been engaged in direct discussions with Prime Minister Narendra Modi regarding the establishment of a new electric vehicle (EV) manufacturing facility in India. This facility would be focused on producing EVs with an approximate price tag of $24,000. However, there has been no public mention of Tesla’s renewable energy initiatives in India.

This development comes shortly after Union Minister Piyush Goyal announced Tesla’s intention to procure components valued at $1.7 to $1.9 billion from India. Goyal further noted that Tesla had already procured $1 billion worth of equipment from Indian suppliers in the previous year.

According to anonymous sources who communicated with Reuters, Tesla proposed the idea of bolstering India’s battery storage capabilities with its “Powerwall” system during recent discussions in New Delhi. The Powerwall system is designed to store energy generated from sources such as solar panels or the grid, making it available for use during nighttime or power outages.

One of the sources mentioned that although Tesla had requested various incentives to establish a battery storage factory, Indian officials conveyed that such incentives would not be provided. However, the government indicated its willingness to support the company in developing a viable economic model by offering subsidies to consumers who purchase Tesla products.

The first source informed Reuters that the implementation of this idea remains uncertain, even though both Tesla and the Indian government continue to express interest in it.

The second source disclosed to Reuters that the Powerwall offer was just one aspect of Tesla’s broader plans for an expanded presence in India, extending beyond EVs. Tesla aims to cater to both residential and industrial consumers with its battery storage systems.

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