Tesla Secures New Office Space In Mumbai In ₹24 Crore Deal

Tech billionaire Elon Musk-owned Tesla has expanded its operational footprint in India by securing a new office space in Mumbai's Kurla area, marking the second major real estate transaction by the American electric vehicle (EV) manufacturer within two months, says a report by ET Auto.

Multi-Crore Lease Agreement

Tesla India Motor & Energy has signed a five-year lease agreement for 24,500 square feet of office space in Macrotech Developers' Lodha Industrial and Logistics Park in Kurla. The deal, registered in May, carries a monthly rental of ₹37.53 lakh at start, with the total rental outlay exceeding ₹24 crore over the complete lease duration.

The lease arrangement includes favourable terms for Tesla, with a rent-free period of one month and ten days. Rental payments commenced on June 1, with the license period officially starting from April 20, according to documents obtained through real estate analytics firm CRE Matrix, the report added.

The agreement incorporates an annual rent escalation of 5%, while Common Area Maintenance charges are fixed at ₹10 per square foot of chargeable area, also subject to 5% yearly increases at the beginning of each financial year.

Accelerated Strategy Post-Modi-Musk Meeting

Tesla's intensified focus on India expansion gained momentum since February, following a significant meeting between Prime Minister Narendra Modi and Tesla CEO Elon Musk during Modi's US visit. The company had previously expressed concerns regarding India's high import duties on EVs.

Government Policy Support Fuels Optimism

The EV manufacturer's India entry has generated much anticipation, following recent policy changes by the Centre designed to attract global EV manufacturers to invest in local manufacturing and establish domestic production capabilities.

Manufacturing Plans Not Revealed

While Tesla has not officially announce a factory location in India, moves such as this substantial office lease suggest that preparatory groundwork for manufacturing and supply chain operations is progressing behind the scenes.