Elon Musk postponed a go to to India which might have included a gathering with Prime Minister Narendra Modi, saying he should are inclined to urgent points at Tesla Inc.
“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,” the billionaire stated in a publish on X. He had been scheduled to go to for 2 days — April 21 and 22 — to announce plans to enter the Indian market.
The choice to postpone comes after a busy week at Tesla. Early Sunday, Musk introduced in a memo to the corporate’s greater than 140,000 workers that he was decreasing headcount by greater than 10% globally. Two high executives additionally departed.
On Wednesday, the corporate stated it is going to ask shareholders to vote once more on a $56 billion compensation bundle for Musk that was voided by a Delaware court docket in January. And on Friday, Tesla recalled nearly 3,900 Cybertruck pickups and reduce the worth of most of its automobiles within the US by $2,000 as gross sales sluggish and inventories rise.
The corporate will even report first-quarter earnings on April 23, having already reported car deliveries that missed estimates by a large margin. The inventory has fallen greater than 40% this yr, dropping the automaker’s market worth to lower than $470 billion.
Musk’s deliberate India go to was vital by way of timing for each him and Modi. India has kicked off voting for its nationwide elections the place Modi is searching for a 3rd time period, citing the nation’s financial rise. Investments from billionaires like Musk would burnish his attraction amongst voters.
Musk is searching for permission for SpaceX’s Starlink to function in what will likely be by far its greatest market. Starlink has already acquired assurances from India’s authorities that will probably be capable of begin working within the nation as quickly because the third quarter of this yr, Bloomberg reported earlier.
Tesla has additionally been making an attempt to interrupt into India for years, however excessive import taxes had been a deterrent — one thing Musk has identified repeatedly. India final month lowered import taxes on EVs from international carmakers that pledge to speculate at the very least 41.5 billion rupees ($497 million) and begin EV manufacturing from a neighborhood manufacturing unit inside three years.
A large funding by Tesla would allow Musk to faucet into India’s burgeoning electric-vehicle market and counter slowing demand for EVs elsewhere. Tesla watchers, nonetheless, would need to see motion on the bottom after witnessing delays in beforehand introduced initiatives corresponding to developing a large plant in Mexico.
