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22-04-2024
NEW DELHI: Elon Musk postponed a planned trip to India where he was to meet Prime Minister Narendra Modi, citing obligations at his Tesla (TSLA.O), opens new tab automaker and saying he aimed to reschedule the visit for later this year.
“Unfortunately, very heavy Tesla obligations require that the visit to India be delayed, but I do very much look forward to visiting later this year,” Musk posted on his X social media platform.
Media reported the postponement on Saturday, citing four people familiar with the matter. The trip was to have included the announcement of plans for the electric vehicle (EV) maker to enter the South Asian market, Reuters has reported.
The CEO and the prime minister are both at critical junctures.
Tesla could have used the India announcement to try to reassure investors after months of share-price declines and the news on April 15 that it would lay off more than 10% of its global workforce.
Musk is expected to face tough questions from analysts when Tesla announces quarterly results on Tuesday about falling sales, rising competition from Chinese EV makers and the fate of key future Tesla products.
Reuters reported on April 5 that Tesla had halted development of its long-awaited affordable EV, often called the Model 2. Musk posted that “Reuters is lying” after the report, without citing any inaccuracies. He has not spoken further about the model, leaving investors clamoring for clarity.
Rohan Patel, a Tesla public policy executive who, according to sources, was one of those leading the company’s India entry plans, also resigned this week.
Musk would have arrived on Sunday, two days after the start of India’s nation election, in which Modi is forecast to win a rare third term. Modi wants to highlight progress toward promises of making India a global manufacturing hub.
After Reuters reported Musk’s India trip plans on April 10, he posted on X that he was “Looking forward to meeting with Prime Minister Narendra Modi in India!”
In New Delhi, Musk was expected to announce an investment of $2 billion to $3 billion, mainly to build a factory in India, after the government announced a policy lowering high tariffs on imported cars if companies invest locally, Reuters has reported.
He was also expected to meet executives from several space startups in New Delhi. Musk is awaiting Indian government regulatory approvals to begin offering his Starlink satellite broadband services in the world’s most populous country.
However, Tesla chief Elon Musk is set to announce an investment in India of $2-$3 billion, mainly for building a new factory, when he visits New Delhi next week to meet Prime Minister Narendra Modi, two sources familiar with the discussions said.
Musk will meet Modi on Monday during his India trip, when the billionaire is expected to unveil his plans to enter the world’s third-largest auto market where electric car adoption is still in its infancy.
India’s EV market is small but growing and dominated by local carmaker Tata Motors (TAMO.NS), opens new tab. EVs made up just 2% of total car sales in 2023, but the government is targeting 30% of new cars to be EVs starting 2030.
Musk’s visit comes as Tesla battles slowing sales in the major markets of the United States and China, and has this week announced layoffs affecting 10% of its workforce.Details of Musk’s India visit are closely-guarded, with the CEO only publicly confirming on his social media platform X that he will meet Modi in India.
For years, Musk opposed India’s high import taxes for EVs and lobbied for a change. India’s government in March unveiled a new EV policy lowering import taxes to 15% from as high as 100%. (Int’l News Desk)
