New Delhi: As the CEO of Twitter, Elon Musk has expressed his appreciation for butter chicken and naan, describing them as “insanely good.” Now, it appears that a team of senior executives from Tesla, the company led by Musk, is planning to visit India in the near future. They aim to explore opportunities in the niche electric vehicle (EV) market and expand Tesla’s presence beyond China.
According to a media report citing insider sources, the Tesla executives are expected to meet officials from Prime Minister Narendra Modi’s office during their visit. The primary focus of the discussions will center around the possibility of sourcing local components for Tesla’s car models.
Although it remains unclear whether Musk himself will accompany the team, he is preparing to hand over the reins of Twitter to Linda Yaccarino, the former chairman of Global Advertising and Partnerships at NBC Universal. Musk intends to dedicate more time to Tesla and steer the company back on course.
Tesla’s executives’ visit to India comes at a time when the country is placing significant emphasis on the adoption of electric vehicles. With favorable government policies and the entrance of new players offering more affordable EV options, India is expected to see a multitude of choices in the next few years. Industry experts predict that electric passenger car penetration will rise to over 21% by 2027, up from 1.3% in 2022.
Despite the potential in the Indian market, Musk has frequently mentioned facing challenges from the government in terms of releasing Tesla’s products in the country. In the past, he expressed that Tesla’s absence in India is due to “challenges with the government.” Moreover, the team Musk hired in India in 2021 was redirected to focus on the Middle East and larger Asia-Pacific markets. Currently, India imposes a 100% tax on imported cars priced above $40,000 (Rs 30 lakh), inclusive of insurance and shipping expenses. Cars valued below $40,000 are subject to a 60% import tax.
With such high taxes, the affordability of Tesla’s Model 3, which is considered a reasonably priced model in the US, would be significantly compromised in the Indian market. It is projected to have a price tag of around Rs 60 lakh. Musk has expressed his desire to introduce Tesla cars in India, but he contends that the country’s import duties on EVs are the “highest in the world by far.”
Elon Musk faced another setback in a separate development when a federal appeals court rejected his attempt to modify a 2018 settlement with the US Securities and Exchange Commission (SEC). This settlement relates to Musk’s controversial “funding secured” tweets. The court ruled that the consent decree reached in 2018 does not impose prior restraint on Musk’s speech and that each of his tweets potentially violated the terms of the agreement. Consequently, Musk is still required to have certain Tesla-related tweets pre-approved by a lawyer. The SEC investigated three of Musk’s tweets, including the infamous 2018 “funding secured” tweet that led to the consent decree, a $40 million fine, and Musk stepping down as Tesla’s chairman.
