Elon Musk has postponed a trip to India that would have included a meeting with Prime Minister Narendra Modi, saying he had to deal with “very onerous” obligations at Tesla Inc.
“Unfortunately, Tesla’s onerous obligations require the postponement of the visit to India, but I very much look forward to the visit later this year,” the billionaire said in a post on X. He had originally planned to visit India for two days, April 21 and 22, to announce plans to enter the Indian market.
Unfortunately, Tesla’s onerous obligations require a postponement of the visit to India, but I’m very much looking forward to visiting later this year.
— Elon Musk (@elonmusk) April 20, 2024
Tesla’s decision to postpone comes after a busy week. Earlier on Sunday, Musk announced in a memo to the company’s more than 140,000 employees that he would be cutting more than 10% of his workforce globally. Two senior executives also resigned.
On Wednesday, the company said it would ask shareholders to vote again on Musk’s $56 billion compensation package, which was invalidated by a Delaware court in January. The company on Friday recalled nearly 3,900 of its futuristic Cybertruck pickup trucks to repair or replace accelerator pedals that can shift and cause the vehicle to accelerate unintentionally, increasing the risk of a crash, and it cut U.S. prices by $2,000 on most of the vehicles as sales slow and inventory builds.
The company will also report first-quarter earnings on Tuesday after saying deliveries in the first three months of the year were significantly lower than expected. The company’s shares have fallen more than 40% this year, pushing the automaker’s market value to less than $470 billion.
Musk’s planned trip to India is crucial for both him and Prime Minister Modi. India has begun voting in national elections, with Prime Minister Narendra Modi seeking a third term, citing the country’s economic rise. Investments from billionaires like Musk will bolster his appeal among voters.
Musk is seeking to allow SpaceX’s Starlink Inc. to operate in the company’s largest market to date. According to an earlier report by Bloomberg, Starlink has received assurances from the Indian government that it will begin operating in the country as soon as the third quarter of this year.
Tesla has also been trying to break into the Indian market for years, but Musk has repeatedly pointed to high import taxes as a hindrance. India last month reduced import taxes on electric vehicles from foreign automakers, which have pledged to invest at least 41.5 billion rupees ($497 million) and start producing electric vehicles at local factories within three years.
On the other hand, Tesla’s huge investment will allow Musk to tap into India’s booming electric vehicle market and counter the impact of slowing demand for electric vehicles in other regions. However, Tesla watchers want to see action on the ground after witnessing delays in previously announced projects like the massive Mexican factory.
© 2024 Bloomberg
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
