Tesla to finally enter India, will build a local EV factory for domestic sales and export

Tesla (NASDAQ:) is looking to further expand its global footprint with a new EV factory in India, as reported by Reuters early Wednesday.

According to a “source with direct knowledge of the matter,” the new plant, if materialized, will produce cars for both domestic sales and export.

Tesla’s senior leadership is reportedly visiting the country this week “to discuss local sourcing of parts and other issues” directly with the government.

The report claims that despite its renewed interest in the Indian market, Tesla’s officials are not discussing the potential lowering of the country’s import tariffs on electric vehicles, suggesting the company does not plan to sell foreign-built cars in the country.

The tariffs, “which can run as high as 100% on imported vehicles,” have long been a stumbling block in Tesla’s efforts to make inroads in India – last May, the company put on hold its plan to enter the country, after its government refused to make concessions on import taxes.

If confirmed, the new factory will become the latest addition to Tesla’s growing global footprint – in late February, the company announced plans to build a $5B plant in Monterrey, Mexico, followed by rumors in April of a new “Megapack” battery-manufacturing facility in Shanghai, China.

Shares of TSLA are trading up 1.3% in pre-market on Wednesday, adding to a nearly 55% gain YTD.