New Delhi, India – Tesla CEO Elon Musk has delayed his highly anticipated visit to India, where he was scheduled to meet with Prime Minister Narendra Modi. The tech mogul cited pressing obligations at Tesla Inc. as the reason for postponing the trip, expressing his eagerness to reschedule later in the year. Musk’s visit was intended to announce Tesla’s entry into the Indian market.
The decision to postpone the visit comes amidst a series of significant developments at Tesla. Recently, Musk announced a global headcount reduction of more than 10% in a memo to the company’s employees. Additionally, two top executives have departed, and the company is facing challenges, such as a $56 billion compensation package for Musk that shareholders will need to vote on again.
Furthermore, Tesla has experienced a decline in vehicle deliveries, falling short of estimates by a notable margin. This has resulted in a 40% drop in the company’s stock value this year, prompting actions such as price cuts and recalls of certain vehicle models in the US.
Musk’s visit to India held strategic importance for both him and Modi, especially as India is amid national elections, with Modi seeking a third term. Musk’s investments in the country could potentially enhance Modi’s standing among voters. Moreover, Musk is seeking permission for SpaceX’s Starlink to operate in India, a move that could significantly impact the company’s operations.
India recently lowered import taxes on electric vehicles (EVs) from foreign manufacturers, which could pave the way for Tesla’s entry into the Indian market. Musk has long expressed interest in tapping into India’s growing EV market, and a substantial investment from Tesla could bolster the company’s position in the region.
Despite the delays in previously announced projects, such as a planned plant in Mexico, Tesla’s entry into India could mark a significant milestone for the company. Observers will be watching closely to see how Tesla navigates the Indian market and whether it can capitalize on the country’s increasing demand for electric vehicles.