US entrepreneur criticizes Elon Musk’s decision to choose China over India for Tesla manufacturing unit

Indian-American academic, entrepreneur, and author, Vivek Wadhwa, has criticized billionaire Elon Musk for choosing China over India for the manufacturing operation of Tesla electric cars. Wadhwa expressed his disappointment in Musk’s decision, stating that “Elon is going to be the biggest loser” by not considering India as a manufacturing hub.

In a recent statement, Wadhwa revealed that he had previously advised Musk to move manufacturing to India instead of China, where he believed Tesla would have dominated the market by now. However, Musk’s visit to India was postponed, and he later visited China, where he secured concessions for Tesla.

Musk was scheduled to meet with Indian Prime Minister Modi and announce a $3 billion investment in a car plant in India, but he cancelled the meeting citing “very heavy Tesla obligations.” Instead, he visited China and made progress towards rolling out Tesla’s advanced driver assistance package in the Chinese market.

Despite recent signs of strengthening ties between Tesla and India, including expectations of a $2 billion investment in an EV plant, no official announcement has been made. Indian officials remain hopeful that Musk will invest in the near future, especially with recent changes to EV policies in the country.

Foreign automakers have faced challenges in China, with companies like Ford Motor Co. exploring alternatives for their manufacturing facilities in India due to high tariffs. However, Tesla’s decision to prioritize China over India has raised concerns among industry experts like Wadhwa, who believe that India could have been a more lucrative market for Tesla.