'Heavy Tesla obligations': Elon Musk postpones India visit, meeting with PM Modi

BNE News Desk

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New Delhi: Elon Musk, the CEO of Tesla, has postponed a planned visit to India later this month, he informed on his social media platform X (formerly Twitter).

Musk was supposed to visit India and meet Prime Minister Narendra Modi before foraying into the country with his electric vehicle (EV) company's long-planned plant. According to media reports that came out ahead of the planned visit, he was also planning to announce some major investments in the country. Tesla's plant will be built at a cost of around $2-3 billion, it has been reported. Moreover, Musk is also said to be eyeing major deals with Indian conglomerates like TATA and Reliance.

"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 wrote on Saturday. On April 10, Musk had said that he looking forward to meeting PM Modi. Last year, the duo met on the sidelines of the Indian Prime Minister's state visit to the US. At the time, Modi had encouraged Musk to make investments in India.

Tesla's entry into India is being facilitated by the federal government's new electric vehicle manufacturing policy giving duty concessions to electric car companies committing to invest at least $500 million in India.

According to several media reports, Musk's planned visit coincided with a crucial Tesla conference call on April 23 in the United States. Musk has been battling a stock that has taken a beating recently, and a global slowdown in EV sales. This makes the entry of the world’s largest EV maker into what is globally the third-largest auto market a significant step.

Falling global sales of EVs and a tough pricing environment have also forced Tesla to lay off around 10% of its global workforce. Meanwhile, Musk, once the richest man in the world, has fallen to fourth on the list, according to the Bloomberg Billionaires Index.

As per the earlier proposed plan, Musk was supposed to be in India for 48 hours, during which he would meet the PM, space startups, and business leaders. New dates for Musk's visit have not been announced so far.

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BNE News Desk