Elon Musk plans to meet with Indian Prime Minister Narendra Modi next week to discuss a significant Tesla investment in India.

Tesla is expected to announce a $2-$3 billion investment for a new manufacturing unit in India.

India's reduction in import tariffs on EVs over $35,000 paves the way for Tesla to enter the market, targeting premium and luxury segments.

Tesla's Project Redwood, aiming to launch a $25,000 mass-market EV, will compete with local Indian EV manufacturers like Tata, Mahindra, and Maruti Suzuki.

Tesla's establishment in India is strategic for achieving the country's goal of 30% EV sales by 2030, where Tata Motors currently leads the market.

The new manufacturing unit will serve as a production hub for Tesla, aiding in its global diversification efforts.

Musk's visit coincides with Tesla's exploration of showroom locations in major Indian cities and potential initial approvals for Starlink's operations in India.