Tesla Inc., the world-renowned electric vehicle (EV) manufacturer, has officially announced the opening of its newest Gigafactory in Gujarat, India, marking a major milestone in the company’s global expansion strategy.
The $5 billion investment will make the factory one of Tesla’s largest production facilities outside the United States, with the capacity to produce up to 500,000 electric vehicles annually. The plant will focus on manufacturing affordable EV models tailored for emerging markets, including India and Southeast Asia.
“India has enormous potential to become a leader in sustainable transportation,” said Elon Musk, CEO of Tesla, during the groundbreaking ceremony. “With this factory, we aim to make electric vehicles more accessible while contributing to India’s green energy goals.”
Indian Prime Minister Narendra Modi welcomed the investment, emphasizing its significance for local job creation and technology transfer. The factory is expected to generate over 20,000 direct jobs and boost the country’s growing EV ecosystem.
Global investors responded positively, with Tesla’s stock rising by 3.8% following the announcement. Analysts believe this move could significantly strengthen Tesla’s position in the rapidly growing Asian EV market, where competition from BYD, Hyundai, and Tata Motors is intensifying.
Tesla plans to begin production by early 2026 and has already started partnerships with local suppliers for battery production and assembly components.
