Could This Be Tesla's Next Big Catalyst?

No wonder (NASDAQ: TSLA) shares have rallied sharply this year. The company is giving investors many reasons to be upbeat. Not only did Tesla report a staggering second-quarter year-over-year growth rate for vehicle deliveries of 83%, but management has also been telling investors that it expects deliveries of its long-awaited Cybertruck to start this year. This momentum in vehicle deliveries and Tesla's exciting product plans are key reasons for the stock's more than doubling this year.

Now Tesla is giving investors yet another reason to remain optimistic. The company is reportedly planning to open a high-volume production factory in India, according to The Times of India. Citing "government sources," the news website said on Thursday that Tesla CEO Elon Musk has been having discussions with the Indian government about a proposal to build a factory there to support production of a new, lower-cost vehicle in the country. A new factory and a new, lower-cost product could be what Tesla needs to help the growth stock live up to its pricey valuation.

Specifically, The Times of India said its source believes the company is looking to build a factory that can build around 500,000 units per year. The vehicle it plans to build, the sources say, would have a starting price of around $24,000 in India. This compares to a starting price for the Model 3 of about $40,000. 

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Source Fool.com