Following a miss on its first-quarter delivery figures, many analysts have declared that Tesla (NASDAQ:TSLA) is poised to lose its status as a member of the “Magnificent Seven.” Now, the electric vehicle (EV) maker is working on finding a location for a factory in India. TSLA stock is down about 11% in the past month and 32% year-to-date.

More About Tesla’s Potential Plant

A group of Tesla employees will visit India later this month to select a location for a potential factory in the South-Asian country, The Financial Times reported, citing unnamed sources. The facility is expected to cost $2 billion to $3 billion to build.

In March, India reduced taxes on some EVs made by firms “that commit to invest at least $500 million” in the country and initiate assembling the vehicles in the country “within three years,” Reuters reported.

Can an Indian Plant Save TSLA After Its Q1 Deliveries Miss?

Yesterday, the automaker announced that it had delivered 386,810 EVs in the first quarter, well below analysts’ average estimate of 431,000 deliveries. And only a month ago, analysts, on average, had expected TSLA to hand over about 470,000 EVs to its customers in Q1.

Tesla reported that it had faced some supply constraints last quarter. However, the company delivered nearly 50,000 fewer EVs than it had produced. The gap suggests that the firm, which handed over more than 484,000 EVs in Q4, is also dealing with demand pressures.

The Indian economy is rapidly growing, as the World Bank predicts that it will expand by 7.5% this year. As a result, Tesla will probably have a good chance to eventually sell many EVs in the country.

However, it will likely take at least two to three years for the plant to be built, and TSLA stock can fall a great deal before then.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines