Tesla has reportedly paused its plans to invest in India, with Elon Musk's team halting communication with Indian officials. Musk had earlier postponed a planned visit to the country in late April when he was scheduled to meet PM Modi. His visit was initially planned shortly after India reduced import taxes on EVs for foreign carmakers that commit to substantial local investment and production.
The report suggests that Tesla hasn't reached out to New Delhi officials since Musk delayed his trip.
According to the sources, 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.
Tesla 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 also been delayed.
In spite of 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. The major hurdles for potential buyers include high upfront costs and a lack of charging infrastructure.
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