Tesla Ceases Contact With Indian Government: Report

Tesla Inc may not be investing in India anytime soon as the brand has ceased contact with the Indian government, as per the latest report by Bloomberg. Elon Musk’s team hasn’t made any contact since the CEO of Tesla postponed his visit to India in April. 

Bloomberg reports that the government of India understands that Tesla has capital issues and does not have plans to make fresh investments in India in the near future. This was further accelerated by Tesla’s declining deliveries and increasing competition in the Chinese market. Due to the lack of funds, Tesla also downsized its staff, its factory in Mexico has been delayed and sales of the Cybertruck have been slow. 

Musk’s plan to visit India and meet Prime Minister Modi was delayed due to “very heavy Tesla obligations”. He announced the update to these plans in April but expressed his eagerness to reschedule his trip later in the year. Musk's plans to visit India were announced weeks after India introduced a new EV policy that lowered import taxes. 

Bloomberg’s report states that the Indian government is pinning its hopes on domestic automakers like Tata Motors and Mahindra to boost EV production. Bloomberg’s sources also mentioned that Tesla is still welcome to enter the Indian EV market and avail the new EV import policy.