Indian officials have cooled hopes of a Tesla production unit in the country as executives of the Elon Musk-led electric vehicle maker have stopped contacting them, reports said.
The country no longer expects Tesla to move forward with an investment as Musk's teams has not followed up on inquiries with officials in New Delhi, the report said, citing sources familiar with the matter. The pull back comes months after Musk postponed his April visit to India, the sources added.
The Indian government has been made aware of Tesla's financial issues, they said, adding that the EV-maker has no plans to funnel fresh funds into India. Tesla and officials from the Union Ministry of Heavy Industries did not respond to queries, according to the report.
The development comes as Tesla recorded a second consecutive drop in global deliveries this quarter, and faces increased competition in China. In April, Musk announced job cuts, the automaker has seen sales of its flagship Cybertruck stall, and its Mexico plant construction delayed.
Musk also cancelled a visit to India that was supposed to include a meeting with Prime Minister Narendra Modi in April. The billionaire claimed “pressing issues” at work kept him away, but was seen in Vietnam weeks later.
Meanwhile, the Indian government seems to have turned its hopes for boosted EV production towards domestic players such as Mahindra & Mahindra and Tata Motors, sources said.
