Despite Elon Musk’s postponed visit to India, Tesla’s commitment to apply for the new electric vehicle manufacturing policy remains firm, according to insider sources. Tesla’s Chief Sourcing Officer is slated to visit India soon to engage with prominent component manufacturers.

The US-based automaker aims to ramp up component sourcing from India to $15 billion over the next five years, reveals a source preferring anonymity. Tesla teams continue scouting various Indian locations for establishing a manufacturing facility.

Recently, Tesla inked a deal with Tata Electronics for component procurement. Notably, one of Tesla’s top five suppliers in India, Sona Comstar, inaugurated a manufacturing unit in Mexico to meet the burgeoning demand for electric vehicle components in North America, including Tesla’s requirements.

India gains prominence for Tesla amidst slowing sales in China. Musk’s visit to India is likely post the general elections, possibly to avoid entanglement in political dynamics. His delayed visit might also stem from the government’s restriction on making new announcements during the model code of conduct.

Musk cited heavy responsibilities at Tesla for the postponement, amidst the company grappling with declining sales in key markets, particularly China. BYD surpassed Tesla in annual production in 2023, prompting shareholders to seek a clear growth roadmap from Musk and the launch of new vehicles.

Tesla faces a 40% stock price decline this year, alongside dwindling advertisement revenues at X. Moreover, the recent recall of 4,000 Cybertrucks due to an accelerator pedal issue adds to the company’s challenges.

With an upcoming earnings call on April 23, Musk anticipates addressing queries regarding China’s negative growth, the Model 2 rollout plan, and Tesla’s AI strategy.

By : Kruthiga V S

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