TESLA UNLIKELY TO MOVE AHEAD WITH INDIA INVESTMENT PLAN: REPORT

Tesla Inc. is unlikely to proceed with its investment plan in India as executives from the electric carmaker have ceased communication, reported Bloomberg, quoting sources familiar with the matter.

The report noted that Tesla CEO Elon Musk's team has not made further enquiries with officials in New Delhi since the billionaire postponed a visit to India in late April, the sources told the publication.

The sources indicated that the government has been informed that Tesla is facing capital issues and does not plan to commit new investments in India in the near future.

Tesla's waning interest in India coincides with the company reporting its second consecutive drop in quarterly deliveries globally and facing increased competition in China.

In April, Musk announced significant staff reductions, and the EV maker's latest model, the Cybertruck, has been slow to ramp up, while construction of a new plant in Mexico has been delayed.

Musk had cancelled a planned visit to India in April, which was to include a meeting with Prime Minister Narendra Modi, citing pressing issues at the company.

This visit was announced shortly after India lowered import taxes on EVs from foreign carmakers that pledge to invest at least Rs 4,150 crore and start EV production from a local factory within three years.

Instead, the government is now relying on domestic automakers like Tata Motors Ltd. and Mahindra & Mahindra Ltd. to boost EV production, the sources told Bloomberg.

However, they noted that Tesla would still be welcome to benefit from the new import tax policy should Musk decide to re-engage.

2024-07-04T10:40:57Z dg43tfdfdgfd