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The company is pushing for an exemption from import penalties until it establishes a factory in the country.

Tesla is apparently involved in discussions to build a new factory in India.CEO Elon Musk in 2015 said a Gigafactory in India would "probably make sense in the long term" given the high local demand. He later lamented the country's strict requirements for domestic parts content in vehicles sold locally, however.

In a more recent Twitter post, the executive said the company is involved in discussions with the government of India "requesting temporary relief on import penalties/restrictions until a local factory is built."

As the important Model 3 launch looms over the horizon, Tesla has warned that its Fremont factory could soon reach its capacity limit and upcoming models will need to be built at other assembly plants. The next vehicle on the list, the Model Y crossover, is expected to be even more popular than the Model 3.

Musk recently said Tesla plans to finalize locations for "probably four" more Gigafactories before the end of the year. China has already been mentioned as a top priority. Aside from India, other likely candidates include a European facility and another factory in the US.