Tesla Inc (TSLA.O) Chief Executive Officer Elon Musk said on Tuesday the automaker would select a location for a new factory by the end of this year.
When Thorold Barker of the Wall Street Journal asked Musk at an event if India was interesting, he said, “Absolutely”.
Tesla is “serious” about its plans to set up a manufacturing base in India, the country’s deputy technology minister told Reuters in an interview last week.
Tesla announced earlier this year that it would open a gigafactory in Mexico as the world’s most valuable automaker pushes to expand its global production.
Elon Musk, the CEO of Tesla, SpaceX, Twitter and the founder of several other firms, pitched Tuesday an idea to create an educational institution that controls a majority of his votes, without giving details.
He said he has identified a successor to the board so that person can run the company in a “worst-case scenario”. “I’ve said to the board ‘look, if something unexpected happens to me, this is my recommendation,'” he said.
Tesla board director James Murdoch testified in court last year that Musk has identified someone as a potential successor to the electric carmaker at a time when investors were concerned about his preoccupation with Twitter. Musk recently announced a new CEO for Twitter and said he would focus more on Tesla.
Tesla Will Pick a New Factory Site. It Could Follow in Apple’s Footsteps.
According to CEO Elon Musk, Tesla is set to pick up another factory location by the end of this year. India appears to be one of the most likely options, potentially a milestone in the country’s role in diversifying supply chains away from China.
Speaking in an interview at The Wall Street Journal’s CEO Council Summit on Tuesday, Musk said India is an interesting option but did not commit to any location.
Tesla TSLA -1.90% (ticker: TSLA), the electric-vehicle maker, currently operates factories in the US, Germany and China, and has already confirmed plans for a fifth car-assembly site in Mexico.
India has been a popular choice for large technology companies looking to add manufacturing sites outside China. Apple AAPL -0.32% (AAPL) is increasing the production of its devices in India.
According to Reuters, officials in India have held talks with Tesla in recent weeks over manufacturing incentives despite a disagreement over the country’s import taxes on cars.
Other countries that have previously been mentioned as candidates for the new Tesla site include Indonesia and South Korea.
Tesla shares were down 0.8% in premarket trading on Wednesday. The stock fell 1.6% on Tuesday, ending a five-season winning streak.
The market is to blame for Tesla stock’s winning streak.
The stock’s gains stopped nearly a week ago, when Elon Musk recommitted to his leadership role at Tesla.