Tesla has been in talks to set up a new electric vehicle manufacturing plant in India to produce the car at a cost of around $24 000 for several weeks, with discussions being overseen directly by Prime Minister Narendra Modi.
< At recent meetings in New Delhi, Tesla offered to support the country's battery storage capabilities with its "Powerwall," a system that can store energy from solar panels or the grid for use at night or during blackouts.
Although Tesla sought government support to create a battery production plant, Indian officials said they would not provide any benefits to the American company. But they added that the government can help create a fair business model for the company by offering subsidies to those who buy such products.
The Powerwall offer is part of the US company's plans for a larger presence in India, thinking not just about electric vehicles, the second source said, adding that Tesla is seeking to find both residential and industrial customers for its battery storage systems.
Indian officials also said Tesla will have to work to reduce the cost of its batteries, the first source said, adding that the government can help unlock the market with demand expected to be strong.
With incentives, the Powerwall costs more than $5 500 in California with additional costs for solar panels.
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