Tesla (TSLA) has reopened talks with India, proposing to build a new electric vehicle (EV) factory in the country. According to Reuters, citing a source with direct knowledge of the matter, Tesla told government officials on Wednesday that they would like to build a factory to build electric cars for domestic sale and export.
The proposal comes after India refused to agree to Tesla’s request last year to lower the import tax on cars, which can reach as much as 100%. Tesla had hired a local team and began a search for showroom space, but that was also abandoned last year.
According to the source, Tesla did not discuss lower import taxes with Indian officials. Instead, the EV maker proposed setting up a new factory, although without specifying a location or investment. Senior Tesla executives are in India this week, meeting with officials from Modi’s office and other ministries.
Shares of TSLA are up 3.59% in early trading on Wednesday. It remains to be seen if Tesla’s new proposal will be accepted by the Indian government.