Tesla CEO Elon Musk has pushed back his scheduled visit to India. “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 said in a post on X (formally Twitter).
Elon Musk’s planned India trip on April 21-22 included meetings with PM Narendra Modi, space startups, and business leaders.
Musk met Modi during Indian PM’s US tour last June and expressed his intention to visit India in 2024. Also, his visit raised expectations that he could announce Tesla’s entry into the country and introduce his satellite internet project, Starlink.
Moreover, a Tesla advisor, The Asia Group (TAG), recently attended a stakeholders’ meeting on India’s new EV policy. The revised policy empowers the government to offer tariff incentives to EV companies committing to local production in India.
Why Musk Delayed His Visit to India?
What are the “very heavy Tesla obligations?” The social media post clarified the speculation surrounding the reason for the delay.
Musk’s visit aligns with a critical April 23 conference call in the US, addressing questions about Tesla’s first-quarter performance.
In addition, the tech billionaire is tackling substantial obstacles at Tesla. On April 5, Reuters stated that Tesla halted development on its anticipated budget-friendly electric car, the Model 2.
Despite denying the report, Musk has remained silent on the Model 2 while investors continue to inquire about it.
The Departure of Rohan Patel
Rohan Patel, responsible for Tesla’s business development, announced his exit via a post on X (formerly Twitter) on April 15. Allegedly, Rohan’s role was crucial in communicating with senior Indian officials for Tesla/Starlink.
Moreover, his tweet drew attention from specific sectors in New Delhi. It was due to the Union government’s efforts on policy changes potentially facilitating Starlink’s business operations in India.
Before Musk’s visit, the government amended rules on April 16 under the Foreign Exchange Management Act, permitting up to 100% FDI in select space sector activities.
In Conclusion
Sources suggest that Tesla and Starlink’s complicated relationship with India may face prolonged challenges due to the latest developments. However, both parties could resolve the matter after the conclusion of the Lok Sabha elections.
