On July 5, according to media reports, people familiar with the matter said that Tesla may shelve its car-making plan in India indefinitely, and Tesla managers have stopped contacting India.
According to reports, after Musk postponed his visit to India originally scheduled for the end of April, the Tesla team has not had any further communication with New Delhi. People familiar with the matter said that the Indian government has learned that Tesla is currently facing funding problems and does not plan to make new investments in India in the near future.
According to the original plan, Musk visited India on April 21 and 22 and announced plans to build a new car factory. He will also meet with Indian Prime Minister Modi. Indian officials have said that Tesla plans to invest about $3 billion in India to build a factory to produce a low-priced car and import Tesla cars to India later this year.
This week, Tesla released delivery data showing that Tesla sold 444,000 new cars worldwide in the second quarter, down 4.8% from the same period last year. This is the first time that Tesla's sales have declined year-on-year for two consecutive quarters, but this still exceeds analysts' previous expectations (437,000 vehicles).
With Tesla's withdrawal, the Indian government is now pinning its hopes on domestic automakers such as Tata Motors to boost the production of electric vehicles as an alternative. If Musk decides to re-engage with India, Tesla can still enjoy the new import tax policy, which Indian officials also welcome.
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