Tesla Refunds Model 3 Bookings in India, Bigger Plans Ahead?”

Tesla Inc. has begun refunding Indian customers who placed early bookings for its Model 3 sedan, according to emails reviewed by Bloomberg News, reigniting speculation that the electric vehicle giant is finally preparing to enter one of the world’s fastest-growing car markets.

In the emails, Tesla informed customers that it would be returning their reservation fees, initially paid in 2016. "We would like to return your reservation fee for the time being," the communication said, assuring customers that they would be contacted again once the company's India plans are finalized. Tesla added that it hopes to welcome customers back when it officially launches deliveries in the country.

Also Read: Tesla India Operations To Begin Within 3–4 Months; May Allocate 10,000 Cars in Phase 1 – Details | Republic World

Emails sent to Tesla’s Asia-Pacific division seeking comment went unanswered outside regular business hours, as per Bloomberg. 

The decision by Eon Musk-led company to refund early bookings follows the global phasing out of the older Model 3 variant. This move adds to the mounting indications that Tesla is reworking its strategy for India after years of stalled efforts, primarily due to disagreements over the country’s steep import taxes.

The development comes shortly after Tesla CEO Elon Musk announced on X (formerly Twitter) that he plans to visit India later this year. His anticipated visit coincides with ongoing trade negotiations between India and the United States, which could lead to reduced tariffs on imported automobiles — a long-standing hurdle in Tesla’s India ambitions.

Republic Business has recently reported that Tesla Inc. is gearing up for a grand entry into the Indian automotive market, with plans to launch its Battery Electric Vehicles (BEVs) before August 2025. In the initial phase, the US-based electric vehicle maker aims to import and sell 10,000 units across major cities, including Mumbai, Delhi, and Bengaluru, revealed sources aware of the company's plans. 

The move follows years of discussions between the company and the Indian government regarding investment, import duties, and local manufacturing.