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 Tesla’s manufacturing operation. Wadhwa stated that Musk would be the “biggest loser” by not considering India as a manufacturing hub for Tesla electric cars.

In a recent statement, Wadhwa revealed that he had previously advised Musk to move manufacturing to India, where he believed Tesla would have dominated the market by now. However, Musk decided to visit China instead, where he secured concessions for Tesla.

Musk had initially planned a visit to India but postponed it, citing “very heavy Tesla obligations.” He was scheduled to meet with Prime Minister Modi and announce a potential $3 billion investment in a car plant. However, Musk later visited China and made progress towards introducing Tesla’s advanced driver assistance package in the Chinese market.

Despite expectations of Tesla committing around $2 billion to an EV plant in India, any such announcement has been delayed. Indian officials remain hopeful that Musk will invest in the country in the near future, especially with recent changes to EV policies.

The decision to prioritize China over India comes as foreign automakers have faced challenges in the Chinese market. Companies like Ford Motor Co. and Toyota Motor Corp. have encountered difficulties due to high tariffs and changing regulations. However, with India’s evolving EV policies, there is still potential for Tesla to establish a presence in the country.