Elon Musk’s India plan remains on track, Tesla to increase sourcing from India to $15 billion.
Elon Musk's strategy for India stays intact as Tesla plans to raise its sourcing from India to $15 billion.
Elon Musk, the CEO of Tesla, may have delayed his visit to India, but sources familiar with Musk's India strategy confirm that the company remains committed to applying for the new electric vehicle manufacturing policy. CNBC-TV18 has gathered information that Tesla's Chief Sourcing Officer will soon travel to India to meet with key component manufacturers. A source, preferring anonymity, disclosed that Tesla aims to ramp up component sourcing from India to $15 billion over the next five years. Teams from Tesla continue to scout various locations in India for potential manufacturing plant sites.
Tesla recently struck a deal with Tata Electronics for component procurement. Additionally, one of Tesla's top five suppliers in India, Sona Comstar, has inaugurated a manufacturing facility in Mexico to address the growing demand for electric vehicle components in North America, including from Tesla.
With sales in China slowing down, India holds increased significance for Tesla. Musk is now expected to visit India after the general elections. Speculations suggest that one reason for the postponement could be to steer clear of entanglements in Indian political dynamics during the election season. Musk was also eager to announce Starlink's entry into India, which may not have been feasible during this visit due to governmental constraints on new announcements during the election period.
Musk cited heavy responsibilities at Tesla as the reason for delaying his India visit. The company is facing challenges in its major markets, including China, where BYD surpassed Tesla in annual production in 2023. Shareholders are pressing Musk for a clear growth strategy and new vehicle launches as Tesla's stock price has plummeted by 40% this year. Additionally, ad revenues at X have dwindled, and Tesla recently issued a recall of 4,000 Cybertrucks due to an accelerator pedal issue.
Tesla is scheduled to hold an earnings call on April 23 to discuss its first-quarter results with investors and analysts. Musk is anticipated to field questions regarding the negative growth trend in China, the rollout plan for Model 2, and Tesla's AI strategy.
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