Why Tesla has not come to India yet Lets analyze Musks Tweets

Post his meeting with PM Modi, Elon Musk said Tesla will be in India as soon as it’s humanly possible. He also laid out the prerequisites for a sustainable energy future for India. This isn’t the first time he had vaguely talked of bringing Tesla to India. Here’s a thread of all his tweets around the topic to understand what’s the bottleneck. 

Elon Musk Tesla India: The story so far

Let’s try to see it in reverse chronological order.

On June 21, 2023, as part of his 3-day maiden state visit in New York, Modi met Musk and among a wide range of topics, one of the talking points was Musk’s investment plans in India. 

Also Read: Elon Musk wants you to find your next job on Twitter as it takes on LinkedIn

Musk has proposed significant investments in the country and is confident that Tesla’s entry into India won’t take long. In his past tweets, he has revealed why it hasn’t happened yet in the first place.

Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars

— Elon Musk (@elonmusk) May 27, 2022

Indian government wants Tesla to set up its manufacturing base locally. The company so far has Gigafactories set in Shanghai, Germany, and the US. If a Gigafactory in India becomes a reality, then that plant is likely to produce EV batteries and associated technologies. 

Still working through a lot of challenges with the government

— Elon Musk (@elonmusk) January 12, 2022

This is a shift from Tesla’s earlier stance which was to import its cars and components to India. However, then too it would’ve had hurdles to overcome. What, you may ask? The answer is Tariffs/Taxes/Custom Duty.

Also Read: Musk meets PM Modi in New York and discusses the potential arrival of Tesla in India

For context, customs duty on EVs with a value of more than $40,000 is now 70%.

In discussions with the government of India requesting temporary relief on import penalties/restrictions until a local factory is built

— Elon Musk (@elonmusk) June 14, 2017

So, the tentative launch timeline of Tesla in India has changed time and again.

Next year for sure

— Elon Musk (@elonmusk) October 2, 2020

India commits to sell only electric cars by 2030. It is already the largest market for solar power. https://t.co/EGBNTPzmE5

— Elon Musk (@elonmusk) June 1, 2017

Would love to be there this year. If not, definitely next! India

— Elon Musk (@elonmusk) March 15, 2019

Nonetheless, things seem promising since he has been determined to expand Tesla to India for years now and the government is also welcoming of the same (with some conditions). Even Musk agrees that the government's intentions are in the best interest of the country. Let's see how things further unfold. We shall keep you posted on Tesla India news.

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