Tesla Inc. has reportedly ceased communication with Indian officials, leading to speculation that the company’s investment plans in the country may be on hold.
What Happened: Tesla’s team has not made any further inquiries with officials in New Delhi since Elon Musk postponed his visit to India in late April, Bloomberg reported. The government has been led to believe that Tesla is facing capital issues and does not plan to pledge fresh investment into India in the near future.
The cooling of interest in India comes amidst Tesla’s reported second consecutive drop in quarterly deliveries globally and increased competition in China. The company also announced major staff reductions in April, and its first new model in years, the Cybertruck, has been slow to ramp up. Meanwhile, the construction of a new plant in Mexico has been delayed.
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The government is hopeful about domestic automakers like Tata Motors and Mahindra & Mahindra boosting EV production. If Musk decides to re-engage, Tesla would still be welcome to avail itself of the new import tax policy, the report added.
Musk had previously expressed excitement about working in India. In June, he congratulated Prime Minister Narendra Modi on his election win and expressed his anticipation for doing “exciting work” in the country.
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