Tesla Inc (NASDAQ:TSLA) is considering building a battery storage facility in India, according to sources with knowledge of the matter.
The sources told Reuters that Tesla has drawn up plans to make and sell battery storage systems in India and has submitted a proposal to government officials seeking incentives to build the factory.
Indian officials have said incentives to set up the battery storage facility will not be available, but that it may offer consumer subsidies to encourage purchases, one of the sources told the publication.
According to the sources, Tesla has proposed supporting India’s battery storage capabilities with its “Powerwall” system that allows solar-generated power to be stored for use at night or during power outages.
"Large policy level calibration will be required. Tesla's intent is to have the Powerwall business in India," the sources said, as reported by Reuters.
Tesla has been in talks with Indian officials about building a factory to produce low-cost electric vehicles in India for the local market for several weeks, but this marks the first report of its intention to build a battery storage facility in the country.
Tesla and the Indian government’s chief spokesperson did not respond to requests for comment on the sources’ information, Reuters said.
The report comes after Tesla CEO Elon Musk said earlier this week said Turkey was a top contender for a Tesla factory.
The company currently has six gigafactories located in the United States, Germany, and China, with a seventh underway in Monterrey, Mexico.
Tesla shares have fallen about 4.5% week-over-week on concerns it could be the next unionization target amid the United Auto Workers’ strikes against the Detroit Three carmakers. Tesla shares traded hands at US$254.60 in the early afternoon on Friday.
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