Tesla to Set Up Electric Car Manufacturing Unit in Karnataka, Says CM Yediyurappa FOLLOW US ON: Tesla Inc will set up an electric car manufacturing unit in Karnataka, Chief Minister BS Yediyurappa said on Saturday. The statement was part of a press release on Saturday listing benefits for the state under the Union Budget. However, according to sources in the Chief Minister's Office (CMO), the budget does not mention the move but talks around it have been positive. Last month, the American electric carmaker incorporated Tesla Motors India and Energy Private Limited with its registered office in Bengaluru, a hub for several global technology companies.