The company has been in talks with the Indian government for several months about entering the country's EV market.
Tesla's proposed plant would be located in the southern state of Karnataka
and would have an annual production capacity of 300,000 vehicles.
The government has said that it is committed to making India a global hub for EVs.
The government has also said that it is willing to offer Tesla incentives to set up the plant in India.
Tesla CEO Elon Musk has said that he is "excited" about the potential of the Indian market.
The company has been testing its Model 3 and Model Y cars in the country.
Overall, the latest news about Tesla and India is positive.
The company is in talks with the Indian government about setting up a factory in the country.