New Delhi, Apr 15 (KNN) Tesla, the world's most valuable automotive company, has struck a strategic deal with Tata Electronics to source semiconductor chips for its global operations.

The deal, executed discreetly a few months ago, positions Tata Electronics as a reliable supplier for prominent global clients aiming to establish a crucial segment of their semiconductor value chain in India, reported ET.

While the value and other specifics of the sourcing agreement between Tesla and Tata Electronics remain undisclosed, the deal holds significance as the US-based electric vehicle (EV) giant seeks to penetrate the Indian market, the world's fastest-growing major automotive market.

Elon Musk, Chief Executive Officer, Tesla, is scheduled to visit India this month for discussions with Prime Minister Narendra Modi. During his visit, Musk is expected to unveil potential investments in India, including commitments to EV manufacturing facilities.

This comes amidst recent speculation about Tesla's interest in finding a local partner to establish its presence in India. Last week, reports emerged that the American EV giant is considering the possibility of a joint venture with Reliance Industries to construct manufacturing facilities within the country.

According to these reports, Tesla has earmarked USD 2 billion for its upcoming ventures in India and has been exploring various locations, including Gujarat and Maharashtra, as potential sites for its plant.

(KNN Bureau)