Tesla CEO Elon Musk has postponed his planned visit to India to later this year, citing “very heavy Tesla obligations.” Musk was set to meet with Prime Minister Narendra Modi during his visit to announce investment plans for the country.
The decision comes at a crucial time for Tesla, as the company is set to release its financial results for the first quarter of 2024 after market close on April 23. This announcement follows a decline in Tesla sales for the first time since 2020, with a reported 8.5% year-on-year drop in sales in the quarter ended March 31, 2024.
The decline in sales was attributed to various factors, including production challenges with the updated Model 3 at the Fremont factory and disruptions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin. As a result, Tesla’s market share has decreased from 62% at the beginning of 2023 to 51% currently.
Despite these challenges, Musk remains optimistic about the future of Tesla in India, the world’s most populous country. The Indian government recently unveiled a new EV import policy aimed at encouraging investment in the country’s EV sector. Under the new policy, automakers are required to make a minimum investment of ₹4,150 crore or $500 million and achieve certain localization targets within a specified timeline.
Musk’s visit to India later this year is eagerly anticipated, as Tesla continues to explore opportunities to establish a manufacturing presence in the country. With the Indian government’s push for electric vehicles and the growing demand for sustainable transportation options, Tesla’s entry into the Indian market could have a significant impact on the country’s automotive industry.