-
Tesla has paused its investment plans in India due to current capital issues.
-
Elon Musk’s visit to India, scheduled for April, was postponed, and communication with Indian officials has halted.
-
India’s electric vehicle market is still emerging, with high upfront costs and lack of charging infrastructure being major hurdles.
Tesla has put its investment plans in India on hold, according to a report by Bloomberg. The company’s team, led by Elon Musk, has halted communication with Indian officials, and there are no plans for fresh investments in the near future. This development comes after Musk postponed his visit to India in April, where he was scheduled to meet Prime Minister Narendra Modi.
The pause in investment plans is likely due to Tesla’s current capital issues, which have led to a second consecutive quarterly drop in global deliveries. The company is also facing increased competition in China and has announced significant staff reductions. Despite this, Indian officials have stated that Tesla would still be welcome to invest in the country under the new import tax policy if it decides to re-engage.
India’s electric vehicle market is still in its early stages, with battery-powered cars making up only 1.3% of total sales last year. The government is focusing on domestic automakers like Tata Motors and Mahindra & Mahindra to boost EV production. High upfront costs and a lack of charging infrastructure are major hurdles for potential buyers, but the government is working to address these issues to promote the adoption of electric vehicles.
