Elon Musk took to his social media platform X, formerly known as Twitter, to announce his upcoming visit to India for a meeting with Prime Minister Narendra Modi. Although he didn’t specify a date, anticipation is high as the Tesla CEO is expected to unveil significant investment plans in the country.
India recently reduced import taxes on electric vehicles (EVs) for international carmakers committing to investing $500 million and initiating local production within three years. This move aligns with Musk’s previous remarks in 2021, where he highlighted India’s high import duties as a barrier to Tesla’s entry into the country’s rapidly growing economy.
In his post on Wednesday, Musk expressed his anticipation for the meeting with Prime Minister Narendra Modi in India. According to a senior Indian government official, the meeting is slated for the last week of April and will be held at Modi’s official residence in New Delhi. Discussions are expected to include Tesla’s plans for manufacturing in India.
Musk’s visit coincides with India’s commencement of a marathon, six-week-long election process starting on April 19. With Modi’s Bharatiya Janata Party (BJP) widely anticipated to secure a third term, an investment announcement from Tesla during this period would enhance Modi’s reputation for attracting foreign investment and fostering job creation.
The relationship between Musk and Modi was previously highlighted during their meeting in New York last June, where Musk acknowledged Modi’s efforts to encourage significant investments in India.
Tesla’s expansion into India occurs amidst challenges in its key markets like the US and China, with declining sales attributed to various factors including a fire at its European factory, disruptions in global shipping, and heightened competition. Despite price cuts to remain competitive, Tesla has experienced a decrease in demand, leading to a decline in its stock value.
India’s economic growth, surpassing the UK to become the world’s fifth-largest economy in 2022, further underscores its appeal as a strategic market for Tesla’s expansion, especially with its thriving manufacturing sector contributing to an 8.4% growth in the December quarter.
