Elon Musk postpones meeting with Indian PM Narendra Modi amid Tesla turmoil
In a surprising turn of events, Tesla CEO Elon Musk has postponed his scheduled trip to India where he was expected to meet Prime Minister Narendra Modi. Citing pressing obligations with Tesla, Musk announced the delay on his X account, expressing his commitment to rescheduling the visit later this year. “Unfortunately, very heavy Tesla obligations require that the visit to India be delayed, but I do very much look forward to visiting later this year,” Musk stated. This postponement comes at a critical time when Tesla is poised to make significant inroads into the South Asian electric vehicle (EV) market.
Musk’s planned trip was not just a routine visit; it was set to include a major announcement regarding Tesla’s entry into the burgeoning Indian EV market. This move is viewed as a strategic pivot to boost investor confidence following a period of share-price declines and recent news of workforce reductions. On April 15, Tesla announced it would lay off more than 10 percent of its global workforce, adding to the urgency for positive news and market expansion.
Amidst these corporate challenges, India has introduced a new EV policy that could significantly benefit Tesla. The policy reduces import taxes from 100 percent to 15 percent for some models, contingent on a minimum investment of $500 million and the establishment of a manufacturing facility in India. Reports from Reuters earlier indicated that Tesla officials were scheduled to visit India to scout locations for a $2 billion manufacturing plant, underscoring the company’s commitment to expanding its global footprint.
The timing of Tesla’s planned expansion into India coincides with a slowdown in demand for EVs in its primary markets, the United States and China. This shift is driven by heightened competition from Chinese automakers, which makes the Indian market an attractive alternative. To cater to the Indian consumers, Tesla has initiated the production of right-hand drive vehicles at its German facility, targeting exports to India later this year.
Despite being relatively small, India’s EV market is experiencing rapid growth, predominantly led by local automaker Tata Motors. Tesla’s entry into this market is expected to introduce new dynamics and possibly accelerate the adoption of electric vehicles across the region.