On July 4th, Cailian Press learned from insiders that $Tesla (TSLA.US)$After CEO Musk postponed his highly anticipated trip to India, the company executives stopped contacting the Indian side, and the Indian side expects Tesla's vehicle production plan in India to be indefinitely shelved.

According to the original plan, Musk visited India on April 21st and 22nd to announce plans to build a new plant and meet with Indian Prime Minister Modi. Indian officials have stated that Tesla plans to invest about $3 billion in India to build a factory, produce a low-cost car, and import Tesla cars into India later this year.

But on April 20th, the day before the visit, the billionaire suddenly announced the postponement of the visit to India, saying that "Tesla's business is very busy," but he expressed his expectation to visit India later this year. A week later, Musk appeared in China.

Sources said that in fact, after Musk broke his promise, the Tesla team did not make any further inquiries or contact with Indian government officials. The Indian government has learned that Tesla has financial problems and does not intend to make new investments in India in the short term.

In March, the Indian government agreed to cut import duties on electric cars from multinational companies that build factories in India. The new policy will reduce the import duty on electric cars priced at $0.035 million and above from 100% to 15%. However, the precondition is that the manufacturer invests at least $0.5 billion in factories in India and meets other specific conditions.

India has imposed high tariffs on foreign cars for a long time, and Tesla has been trying to enter the Indian market. The new policy of India is a huge victory for Tesla and other automakers.

Musk's change of plan for his trip to India marks a change, and also raises questions about Tesla's plans to manufacture cars in India.

This week, Tesla released its delivery data, showing that it sold 0.444 million new cars globally in the second quarter, down 4.8% from the same period last year. This is the first time Tesla has experienced a year-on-year decline in sales for two consecutive quarters. Analysts say that although Tesla's deliveries have declined year-on-year for two consecutive quarters, they still exceed analysts' previous expectations (0.437 million cars), which greatly boost the market sentiment.

Tesla currently has four vehicle factories located in Shanghai, China, Berlin, Germany, Austin, Texas, and Fremont, California, USA. In addition, Tesla announced in March last year that it will build a car factory in Nuevo Leon, Mexico.

Sources said that as an alternative, the Indian government will rely more on domestic auto manufacturers such as Tata Motors and Mahindra. They added that if Musk decides to participate again, Tesla can still take advantage of the new import duty policy.

Data shows that India's electric vehicle market is still in its infancy. Last year, electric vehicles accounted for only 2% of India's total vehicle sales. The government hopes to increase this proportion to 30% by 2030. Due to the high initial cost of electric vehicles and the lack of charging stations, many consumers are hesitant about whether to purchase electric vehicles.

Editor / jayden