Elon Musk postpones India trip, aims to visit later this year

Tesla’s CEO Elon Musk postponed his trip to India to meet Prime Minister Narendra Modi, citing obligations at his Tesla automaker.

The Tesla CEO said 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 account.

Musk’s trip was to have included the announcement of plans for the electric vehicle (EV) maker to enter the South Asian market, according to reports.

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 per cent of its global workforce.

Tesla has been lobbying the Indian government for months to reduce import taxes on electric vehicles, even as it considerssetting up a factory in the country.

India’s new EV policy

India recently introduced a new EV policy, cutting import taxes to 15 per cent from the former 100 per cent for some models. This comes with the expectation that the manufacturer invests a minimum of $500 million and establishes a factory.

Earlier reports by Reuters indicated that Tesla officials were set to visit India this month to identify locations for a manufacturing plant, requiring an investment of approximately $2 billion.

Additionally, Tesla has initiated the production of right-hand drive cars at its German facility, targeting exports to India later this year.

Tesla's expansion into the Indian market comes at a time when demand for electric vehicles is slowing in its primary markets, the US and China, due to increasing competition from Chinese automakers.

Tesla recently reported a decline in first-quarter deliveries, falling short of analyst expectations.

India's electric vehicle market, although currently small, is on an upward trajectory and is predominantly led by local automaker Tata Motors.

(With inputs from agencies)