In a recent post on X, Elon Musk hinted at Tesla’s potential entry into the Indian market, marking a significant development in the company’s long-awaited expansion plans.
Speculation has been rife for years that Tesla would establish manufacturing operations in India, tapping into one of the world’s largest automotive markets. However, negotiations between the two parties have hit a roadblock, primarily over import terms.
Tesla has expressed interest in testing the demand for its electric cars in India through imports from its German factory. However, India’s stringent import duties would significantly raise the cost of Tesla cars, complicating the assessment of demand.
Earlier this year, Musk was expected to visit India to potentially announce Tesla’s investment plans. However, the trip was postponed last minute, leading to speculations about the future of Tesla’s prospects in India.
Musk’s recent message to Narendra Modi, congratulating him on his victory in the elections, has sparked renewed hope for Tesla’s entry into India. Musk’s message hinted at the possibility of Tesla, along with other Musk companies, undertaking exciting work in India soon.
Congratulations @narendramodi on your victory in the world’s largest democratic elections! Looking forward to my companies doing exciting work in India.
— Elon Musk (@elonmusk) June 7, 2024
“Congratulations, Narendra Modi, on your victory in the world’s largest democratic elections! Looking forward to my companies doing exciting work in India,” Musk’s message read.
Modi’s re-election could pave the way for improved relations with Tesla, as the two have previously discussed potential partnerships without reaching a concrete agreement. This latest development suggests that Tesla’s entry into the Indian market may be closer than ever before.
