The South African government has urged Elon Musk's Tesla to "explore the possibility" of manufacturing products in South Africa.

Rob Davies, minister of trade and industry, encouraged Tesla to "work with his department" after the company apparently expressed an interest in investing in SA during a business breakfast session in Washington in the United States.

According to a government statement, Minister Davies indicated that South Africa's auto programme already had an additional incentive that applied to the electric vehicles.

He further stated that government understood that "electric vehicles are where things are going, including hybrids and fuel cells".

Earlier this year, SA-born Musk revealed that the new Model 3 electric car would be sold in various new markets, including South Africa.