Elon Musk's Upcoming Meeting with PM Narendra Modi Sparks Speculation on Tesla's Investment in India

Tesla CEO Elon Musk announced his planned visit to India to meet with Prime Minister Narendra Modi, sparking curiosity, as he is likely to discuss substantial investment plans for the country.

Tesla may join the Indian market after India slashed EV import tariffs for $500 million invested worldwide by manufacturers that started local production within three years. Tesla missed out on India's fast-growing market in 2021 due to hefty import fees, per Musk.

Elon Musk posted on Wednesday, "Looking forward to meeting with Prime Minister Narendra Modi in India!" A senior Indian government official informed that Modi's official residence in New Delhi will host the meeting in the final week of April.

Why Tesla is Gearing Towards India

According to BBC, Elon Musk's India visit comes when the marathon six-week elections begin on April 19. Experts anticipate that Modi's BJP will secure a third term.

Tesla's investment announcement during the election will boost Modi's image for luring international investment and job development. The tech mogul praised Modi's efforts to attract major investments to India during their June 2018 New York meeting.

This foray into India is critical for Tesla, as it faces rising competition from Chinese automakers. Tata Motors dominates India's small but growing electric vehicle industry. EVs accounted for just 2% of Indian vehicle sales in 2023, but the government targets 30% by 2030.

Tesla's German facility is also making right-hand drive cars for India later this year, insiders say. Musk stated on X this week that India should have electric automobiles like other nations. "It's a natural progression to provide Tesla electric vehicles in India."

In 2022, India overtook the UK as the world's fifth-largest economy as its robust manufacturing sector boosted GDP by 8.4% in the last quarter. On the other hand, Tesla confronts challenges in the US and China, where EV demand and deliveries decreased in the first quarter of this year. Consequently, the EV company has implemented price cuts on its EVs.

Tesla's Shifting Strategy

The move follows Techtimes' report that Tesla is changing its attention from its inexpensive EV to its robotaxi. Elon Musk expects the $25,000 model around 2025. Tesla reportedly abandoned the cheap EV project to focus on robotaxis.

X (formerly Twitter) CEO Elon Musk attends a symposium on "Antisemitism Online" during the European Jewish Association conference in Krakow, on January 22, 2024.

Musk believes that robotics is the future of transportation, and the firm is committed to this vision. The aborted project, formally called "Redwood" and commonly called "Model 2," sought 10,000 automobiles every week. Musk has said Tesla is working on two new EV models with a five-million-unit sales potential.

Elon Musk has stated his goal of using premium car sales to fund cheaper variants for over twenty years. A large Tesla employee meeting in late February allegedly ordered the affordable EV's cancellation. Reuters claims to have uncovered internal Tesla correspondence concerning this strategy move, including directions to not alert suppliers about the program discontinuation.

After the budget model was removed, Tesla's lowest model was the Model 3 sedan, priced at $39,000 and above. The projected price of the canceled budget car was approximately $25,000. As US electric car demand stagnates and Chinese competition grows, Tesla faces hurdles, with BYD leading the affordable EV market.