Elon Musk has decided to delay his highly anticipated visit to India, which would have included a meeting with Prime Minister Narendra Modi. The Tesla CEO cited “very heavy” commitments at Tesla Inc. as the reason for the postponement.
Musk’s Announcement on X
In a post on X, Musk expressed his regret about the delay: “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.” The visit, originally scheduled for April 21 and 22, was expected to include major announcements about Tesla’s entry into the Indian market.
Hectic Week at Tesla
The postponement follows a particularly busy period for Tesla. Musk recently informed Tesla’s 140,000+ employees via a memo that the company would reduce its global workforce by over 10%. Additionally, two senior executives left the company. On Wednesday, Tesla announced it would ask shareholders to vote again on Musk’s $56 billion compensation package, which a Delaware court voided in January. By Friday, Tesla had recalled nearly 3,900 Cybertruck pickups to address a safety issue with accelerator pedals and slashed prices on most of its cars in the US by $2,000 due to slowing sales and rising inventories.
Tesla’s Market Performance
Tesla is also set to report its first-quarter earnings on Tuesday, having already disclosed that deliveries in the first three months fell significantly short of expectations. The company’s stock has plummeted over 40% this year, reducing its market value to under $470 billion.
Strategic importance of India Visit
Musk’s planned visit was strategically important for both him and Prime Minister Modi. India is currently holding national elections, and PM Modi is campaigning for a third term, emphasizing the country’s economic progress. Investments from high-profile entrepreneurs like Musk would enhance his appeal among voters.
Permission from SpaceX
Musk is also seeking permission for SpaceX’s Starlink Inc. to operate in what would be its largest market yet. India’s government has assured that Starlink could begin operations as early as the third quarter of this year. Meanwhile, Tesla has long been trying to enter the Indian market but faced hurdles due to high import taxes. Last month, India reduced import taxes on electric vehicles for foreign manufacturers that commit to investing at least 41.5 billion rupees ($497 million) and begin local EV production within three years.
Road Ahead : Tesla in India
A significant investment by Tesla in India would allow Musk to tap into the rapidly growing electric vehicle market and offset declining demand elsewhere. However, Tesla enthusiasts are eager to see concrete steps after delays in previously announced projects, such as the massive plant in Mexico.
Stay tuned for updates as Musk’s plans for India continue to evolve and as Tesla navigates its current challenges.
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