Tesla India Motor & Energy Pvt Ltd, the Indian subsidiary of Elon Musk’s Tesla, is one step closer towards establishing a manufacturing presence in India as it reportedly scooped up office space in the country.
What Happened: The company has leased office space in Panchshil Business Park at Viman Nagar, Pune, according to the documents accessed by CRE Matrix. The lease agreement spans five years, and Tesla will occupy a 5,850-square-foot office on the first floor of the park’s B wing.
Tesla will reportedly pay a monthly rent of ₹11.65 lakh and a security deposit of ₹34.95 lakh for the 60-month lease. The deal includes five car parks and ten bike parks and is scheduled to begin from October 1. Both parties have agreed to a lock-in period of 36 months, with a 5% per annum escalation clause.
Why It Matters: While Tesla India was registered in Bengaluru in 2021, its entry into the Indian market has met with difficulties. However, the firm has recently been reportedly looking to build a plant in India to manufacture electric vehicles in the country.
Musk met with Prime Minister Narendra Modi during the latter’s visit to Washington in June and expressed his interest in establishing a manufacturing facility in India. He reiterated Tesla’s commitment to invest in the country and stated that Tesla would be in India as soon as possible.
In line with their plans to enter the Indian market, senior executives from Tesla reportedly met with Invest India officials last week and are likely to also hold talks with Commerce and Industry Minister Piyush Goyal.
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