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Elon Musk stops contact with India over investment as Tesla faces capital crisis: Report
Elon Musk’s team hasn’t made any further inquiries with officials in New Delhi after the billionaire postponed a visit to India in late April.
Elon Musk is not expected to move forward with Tesla investment in India any time soon as exectutives from the electric carmaker have stopped contacted officials in the country, Bloomberg reported citing people in know. The report claimed that Elon Musk’s team hasn’t made any further inquiries with officials in New Delhi after the billionaire postponed a visit to India in late April. The government is given to understand that Tesla has capital issues and doesn’t plan on pledging fresh investment into India in the near future, they said.
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Crisis at Tesla
The report comes as Tesla reported a second consecutive drop in quarterly deliveries globally and faces increased competition in China. In April, Elon Musk announced major staff reductions as it was reported that the EV maker’s first new model in years- Cybertruck- has been slow to ramp up.
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Elon Musk India visit
Elon Musk in April scrapped a planned visit to India that would have included a meeting with Prime Minister Narendra Modi. Citing pressing issues at Tesla, Elon Musk said that he won't be able to visit India as announced earlier after the country lowered import taxes on EVs from foreign carmakers that pledge to invest at least 41.5 billion rupees ($497 million) and start EV production from a local factory within three years.
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However officials said as per the report, that if Elon Musk decided to re-engage, Tesla would still be welcome to avail itself of the new import tax policy.
