TESLA PAUSES INVESTMENT PLANS IN INDIA AFTER ELON MUSK DEFERS VISIT: REPORT
Tesla has paused its plans to invest in India, with Elon Musk's team halting communication with Indian officials, according to a report by Bloomberg. This comes after Musk postponed a planned visit to the country in late April where he was also scheduled to meet PM Modi.
The report suggests that Tesla hasn't reached out to New Delhi officials since Musk delayed his trip. The sources cited in the report mentioned that Tesla's current capital issues mean it isn't planning fresh investments in India soon.
This development coincides with Tesla reporting its second consecutive quarterly drop in global deliveries. The company is also facing increased competition in China. Recently, Musk announced significant staff reductions. Buyers of Tesla's first new model in years, Cybertruck are also experiencing slower deliveries due to issues in the windshield wipers.
Additionally, construction of a new plant in Mexico has been delayed. Musk had intended to visit India and meet with Prime Minister Narendra Modi in April but canceled due to urgent company matters. His visit was initially planned shortly after India reduced import taxes on EVs for foreign carmakers that commit to substantial local investment and production.
Despite the current pause, Indian officials state that Tesla would still be welcome under the new import tax policy if it decides to re-engage. Meanwhile, the government is focusing on domestic automakers like Tata Motors Ltd. and Mahindra & Mahindra Ltd. to boost EV production. India's electric vehicle market is still emerging, with battery-powered cars making up only 1.3 per cent of total sales last year. High upfront costs and a lack of charging infrastructure are major hurdles for potential buyers.
2024-07-04T10:53:21Z dg43tfdfdgfd