As Elon Musk pushes to enter India, Tesla (TSLA.O) has proposed to officials for incentives to create a factory and develop and sell battery storage systems, two sources said.
Prime Minister Narendra Modi has monitored Tesla’s talks to establish a $24,000 electric vehicle (EV) plant in India for weeks. Renewables efforts have not been reported.
According to secret sources, in recent discussions in New Delhi, Tesla recommended supporting the country’s battery storage capacities with its “Powerwall” technology, which can store electricity from solar panels or the grid for use at night or during outages.
One source said Indian officials told Tesla they would not provide incentives to build a battery storage factory. They stated that government incentives to such product buyers might help the corporation build a fair business model.
The first source stated Tesla and the Indian government are interested in the proposal, but New Delhi is still reviewing it.
The second source claimed Tesla wanted residential and industrial clients for its battery storage systems, including the Powerwall concept, as part of its India expansion beyond EVs.