If the talks are successful, the facility in Bengaluru would be Tesla's second research centre outside the US.
US automaker Tesla is working on a plan to set up a research centre in India's IT capital Bengaluru.
Tesla and Karnataka government officials discussed the matter on September 10, according to a report by The Economic Times.
The officials will present a detailed proposal to the Tesla executives at a meeting later in September, the report said.
Moneycontrol could not independently verify the story.
If the talks are successful, this would be Tesla's second research facility outside the US.
India's electric vehicles (EV) market is estimated to be around Rs 50,000 crore by 2025, according to a report by Avendus Capital July.
Tesla and Karnataka's Department of Industries and Commerce had not yet responded to requests for comment sent by The Economic Times.
"Tesla has shown initial interest to invest in a research and innovation centre in Karnataka and the talks are at a preliminary stage," a source told the publication.Tesla Chief Executive Officer (CEO) Elon Musk had in July said "hopefully" when a Twitter user asked when the Model 3 sedans will be available in India.
Sorry, should hopefully be soon!
— Elon Musk (@elonmusk) July 10, 2020