Elon Musk’s recent visit to China has sparked surprise and speculation in India, where his postponed trip was expected to include a firm commitment regarding Tesla’s operations in the country. Musk cited “very heavy Tesla obligations” as the reason for delaying his visit to India, leading to questions about the nature of these obligations.
While the specifics of Musk’s obligations were not disclosed, it is believed that discussions with Chinese government officials regarding the rollout of Tesla’s Full Self-Driving (FSD) suite were a key focus of his visit to China. This development has left some in India puzzled, with news stations airing segments titled “Hello China, Goodbye India?” according to Reuters.
Tesla has been engaged in discussions with India for nearly a decade regarding the establishment of a Gigafactory in the country. The postponement of Musk’s visit to India, coupled with his visit to China and discussions with government officials there, has raised questions about Tesla’s priorities and commitments in different markets.
Some in India have questioned whether Tesla’s decision to prioritize discussions with Chinese officials over commitments to India reflects “shoddy ethics or simply business.” However, others speculate that the rollout of FSD in foreign markets, such as China, may be a higher priority for Tesla at this time.
Tesla’s struggles to maintain demand for its vehicles, amid increasing competition in the electric vehicle (EV) market, have also been noted. In its Q1 2024 Shareholder Deck, Tesla acknowledged that more companies were shifting their focus toward hybrid electric vehicles, reflecting consumer demand for the advantages of both internal combustion engine (ICE) and EV technology.
The developments surrounding Musk’s visit to China and the postponement of his visit to India have sparked debate about Tesla’s strategies and priorities. The company’s future plans, including the potential rollout of FSD in China and its ongoing efforts to establish a Gigafactory in India, remain topics of interest and speculation.
