Tesla may be rebooting its India expansion plans

Tesla (NASDAQ:TSLA) may be looking once again to enter India. The electric vehicle giant is looking for showroom space in New Delhi, according to local reports. Sources indicate Tesla (TSLA) is in talks with DLF to find showroom locations.

Initially, there were expectations for Tesla (TSLA) to establish a manufacturing presence in India, but developments earlier in the year suggested a shift in those plans. For starters, Elon Musk postponed a planned visit to India in April, where he was expected to meet Prime Minister Narendra Modi and announce Tesla’s (TSLA) investment plans. In addition, Tesla (TSLA) executives reportedly stopped contacting Indian authorities since Musk’s postponed visit, leading to speculation that the company may have shelved its plans for an Indian factory.

Earlier this year, the Indian government approved a new $500 million electric vehicle policy, aiming to attract global investments and position India as a prime manufacturing hub for EV. A key feature of the policy includes a minimum investment requirement of $500 million within three years to establish manufacturing facilities and commence commercial production.

Shares of Tesla (TSLA) were up 4.1% in early afternoon trading.