Following Elon Musk’s decision to defer his visit to India, Tesla has announced a major price reduction in its key markets. Earlier this month, Musk revealed his plans to visit India with an agenda to meet Prime Minister Narendra Modi and discuss Tesla’s foray into the market.
Had everything gone well, the most valuable EV manufacturer could have invested around $2 to 3 billion in India for setting up a Tesla factory. Reports also suggested that the company had started manufacturing right-hand drive vehicles in its German factory. However, Musk has postponed his trip until later this year.
Musk Might Visit The Country Later This Year
Replying to DogeDesigner on X (formerly known as Twitter), Musk confirmed that “very heavy Tesla obligations” require that his visit to India “be delayed.” Even so, Musk said he looks forward to visiting “later this year.” The development led to a wave of conversation on social media platforms, where opposition leaders praised the billionaire’s decision.
Here’s What Opposition Leaders Said About Musk’s Deferred Visit
Member of Rajya Sabha and the Indian National Congress, Jairam Ramesh, tweeted how Musk “read the writing on the wall and decided to put off his visit.”
Priyanka Chaturvedi, another Rajya Sabha and Shiv Sena member, said that Musk didn’t want to be part of BJP’s election campaign. “Is it true that Elon Musk figured that he’d end up being pulled into BJP Jumla Prachaar, and hence he has postponed his trip?” Chaturvedi wrote in a post on X.
Tesla Has Cut Prices In Several Countries
Now, new reports suggest that Tesla has announced a price cut in China and Germany. The development comes at a time when the company is seeing declining sales and increased competition, particularly from Chinese companies.
The company reported lower global vehicle deliveries in the first quarter of 2024. Hence, to counter the difference in production and demand, it has decided to cut the prices on some of its most popular models. For instance, Tesla has reduced the price of Model 3 by CNY 14,000.
Similarly, markets like Africa, Europe, the Middle East, and the United States have also witnessed price reductions. In the United States, the Model S, Model X, and Model Y were discounted by $2,000. Further, the company has also decreased the pricing of its Full Self-Driving software to $8,000.
It is clear that Tesla is actively looking into the stagnant sales and wants to remedy the situation as soon as possible. Expanding into India could have been a way to start a new revenue stream, but it required a substantial initial investment. Nonetheless, the new Indian EV policy still stands its ground and will help US-based EV manufacturers set foot in the country.
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