Richest man in the world, Elon Musk-led electric car giant, Tesla is nearing its India dream. The EV player has reportedly signed a lease deal to launch its first showroom in Mumbai. The Indian showroom is likely to be the size of a basketball court. Following the news, Tesla share price witnessed sharp buying sentiment overnight, and ended with gains of nearly 3%.

As per reports, registration paper showed that Tesla has inked a five-year agreement for leasing its first showroom in India, for selling imported cars.

The papers show the company has signed a five-year lease from February 16, 2025 and will pay rent of about $446,000 for the first year for a 4,003 square feet (372 square meter) space, almost the size of a basketball court, as per Reuters report.

Additionally, the rent will rise by 5% every year, and would eventually reach to $542,000 for the fifth year.

The location of the showroom will in the Maker Maxity, a key retail and workspace hub in Bandra Kurla Complex (BKC) in Mumbai.

Earlier, brokerage CLSA said that the Tesla’s cheapest car could range between Rs 35 lakh to Rs 40 lakh in India. The price estimation includes road tax, insurance and other costs. Currently, Model 3 is sold for $35K in the USA. In India, the Rs 35 lakh to Rs 40 lakh would read as $45K, meaning expensive by $10K from the US price.

In CLSA’s view, Tesla has positioned itself with Model 3 at an on-road price that is 20-50% higher than models like Mahindra XEV 9e, e-Creta, e-Vitara, etc, and hence it would not significantly impact domestic EV models.

According to CLSA, factors such as spacious interior, features, aesthetics, better resale value visibility and right pricing are key for decision-making. To penetrate its presence on Indian roads, CLSA believes it is vital for Tesla to have its own manufacturing unit in the country, to scale its operations and price the cars ranging from Rs 35 lakh to Rs 40 lakh.

Tesla Stock Price:

Tesla share price closed at $279.10 overnight, rising by 2.6%. Its market cap surged by $22.74 billion on Wednesday, taking its total m-cap to $897.73 billion.

Meanwhile, Elon Musk continues to hold the richest man title in the world, with net worth of $336 billion as of March 6, 2025.