Tesla Boss Elon Musk Set To Meet PM Modi In The US

Narendra Modi, India's Prime Minister, is poised to convene with Elon Musk, the influential entrepreneur at the helm of Tesla, SpaceX, and Twitter, during his sojourn in the United States. This rendezvous will be their second, following an inaugural meeting in 2015 during Mr. Modi's maiden visit to the US. It is noteworthy that this is the first time Mr. Modi is crossing the Atlantic during his second tenure as Prime Minister.

The Prime Minister's American agenda is packed, with tête-à-têtes planned with a medley of 24 prominent figures spanning economists, artists, scientists, and captains of industry. Among them, Mr. Musk is in distinguished company, including renowned astrophysicist Neil deGrasse Tyson and Grammy laureate Indian-American chanteuse Falguni Shah.

Reflecting on their initial meeting in 2015, Mr. Musk had intimated plans for the Indian launch of the Tesla Model 3. Despite years of hints and the establishment of an Indian subsidiary, the venture regrettably fell through in 2022. In an unfortunate turn, several Indian executives who were on board for the launch have since parted ways with Tesla or have been reassigned abroad.

A point of contention has been Tesla’s appeal to the Indian government for concessions on import duties for electric vehicles. The firm’s insistence met with resistance from the Indian authorities, especially given the fact that the vehicles were to be imported from Tesla's Chinese Gigafactory in Shanghai. India's relations with China have been strained following the 2020 border clash in the Galwan Valley, which has engendered a pervasive anti-China sentiment in India. Consequently, Chinese firms, including Xiaomi and Huawei, have found themselves under increased scrutiny by Indian regulators.

The Indian government harbours aspirations for Mr. Musk to establish, at the very least, a battery technology factory on Indian soil. However, Tesla and its chief executive exhibit a degree of circumspection regarding such a commitment, preferring to ascertain market conditions before embarking on local manufacturing investments. That being said. Musk has revealed plans for an affordable electric car which may find India as a key target audience and for that Tesla may need to create a new Gigafactory.

Furthermore, Mr. Musk's portfolio of ventures has not been without its tribulations in India. SpaceX began marketing Starlink stations prior to obtaining the necessary regulatory approvals from the Telecom Regulatory Authority of India. Moreover, Twitter has had a tumultuous relationship with the Indian government due to its role in information dissemination.

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