American billionaire Elon Musk has just announced his decision to postpone a planned visit to India due to “heavy” obligations at Tesla.
Tesla boss reschedules trip to India to late 2024
Tesla Chief Elon Musk originally planned to travel to India later this month to meet with Prime Minister Narendra Modi about a potential investment in local electric vehicle manufacturing. However, it seems that the Tesla boss has to attend to more important matters at the company.
According to CEO Musk’s X post, he rescheduled his visit to India in late 2024.
“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.”
Tesla CEO Elon Musk
CEO Musk and PM Modi are expected to disclose key information on the American company’s investment plans in India’s electric vehicle industry. Announcements may reportedly include potential duty cuts the Indian government may offer Tesla for its imports.
In addition, Tesla may also reveal its preferred sales/distribution model in the domestic market, among other details.
“The list of possible announcements includes India providing duty cuts on imported Tesla cars, the company establishing an official sales and service presence in the country, followed by possible manufacturing facilities further out.”
Counterpoint Research Senior Analyst Soumen Mandal
Tesla remains under pressure
Tesla could have taken advantage of the India plans announcement to regain investors’ confidence after declining shares due to waning sales and a 10% workforce layoff.
CEO Musk will undoubtedly receive difficult questions from analysts when the American EV giant releases its Q1 2024 results on Tuesday. Key concerns may include declining sales and delivery figures, intensifying competition against Chinese companies, and next-gen EV plans.
Recent reports suggest that Tesla decided to suspend the development of its $25,000 electric car to focus on the Robotaxi. The Tesla boss denied the news but omitted to point out any inaccuracies.
Tesla’s potential investment in India
Tesla is expected to invest $2 billion to $3 billion in a local electric vehicle factory in India, according to two people with direct knowledge of the matter.
The American electric automaker reportedly plans to send a team to scout for potential factory sites in the country in late April, particularly in states that already house automotive hubs. These states include Maharashtra, Gujarat, and Tamil Nadu.
These recent developments came after the government announced a new electric vehicle policy that promises to cut import tariffs for foreign companies that commit to local manufacturing. All that said, we can expect to learn more about Tesla’s plans for the Indian market after CEO Musk meets with PM Modi later this year.
