Elon Musk postpones visit to India, meet with PM Modi

Tesla India entry: Tesla CEO Elon Musk has postponed his highly anticipated visit to India, originally scheduled for April 22, 2024. The visit, which aimed to solidify Tesla's entry into the South Asian market, included a planned meeting with Prime Minister Narendra Modi.

Elon Musk has confirmed the development on social media platform X. “Unfortunately, very heavy Tesla obligations require that the visit to India be delayed, but I do very much look forward to visiting later this year,” Musk said.

This news comes just ten days after Musk confirmed his plan to visit India by posting on X, "Looking forward to meeting with Prime Minister Narendra Modi in India!"

According to an earlier report by Reuters, Musk's visit would likely involve announcing a significant investment in the range of $2 billion to $3 billion, primarily focused on establishing a manufacturing facility in India. This development aligns with the Indian government's recent policy changes, which aim to incentivise local production by lowering import tariffs on electric vehicles.

Additionally, Musk had plans to engage with executives from various space startups in New Delhi, as he awaits regulatory approvals from the Indian government to launch his Starlink satellite broadband services in the country, home to the world's largest population.

Tesla's recent announcement of layoffs affecting over 10 per cent of its global workforce, coupled with concerns over falling sales and intensified competition, has amplified investor apprehension. Musk is anticipated to confront inquiries from analysts during Tesla's upcoming quarterly results announcement regarding these challenges, as well as inquiries about the status of pivotal future products.

Earlier reports indicating a halt in the development of Tesla's long-awaited affordable electric vehicle, colloquially referred to as the Model 2, were met with a denial from Musk, who refuted the claims without providing specifics. Investors remain eager for clarity on this matter as uncertainty looms over Tesla's product pipeline.

Moreover, Rohan Patel, a key figure in Tesla's India entry strategy, reportedly resigned this week, adding another layer of complexity to Tesla's engagement with the Indian market.

(With Reuters inputs.)