(Bloomberg) — Elon Musk postponed a visit to India that would have included a meeting with Prime Minister Narendra Modi, saying he needed to take care of pressing issues at Tesla Inc.
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“Unfortunately, Tesla’s very heavy obligations require that the visit to India be delayed, but I really look forward to going there later this year,” the billionaire said in a message on X. His visit was scheduled to last two days – April. 21 and 22 – to announce its intention to enter the Indian market.
The decision to postpone comes after a turbulent week at Tesla. Early Sunday, Musk announced in a memo to the company’s more than 140,000 employees that he was reducing its workforce by more than 10% globally. Two senior executives also left.
On Wednesday, the company announced it would ask shareholders to vote again on a $56 billion compensation package for Musk that was overturned by a Delaware court in January. And on Friday, Tesla recalled nearly 3,900 Cybertruck pickup trucks and cut the price of most of its cars in the United States by $2,000 as sales slow and inventories rise.
The company will also report its first quarter results on April 23, having already reported vehicle deliveries well below estimates. The stock has fallen more than 40% this year, bringing the automaker’s market value below $470 billion.
Musk’s planned visit to India was crucial in terms of timing, both for him and Modi. India has kicked off national elections in which Modi is seeking a third term, citing the country’s economic boom. Investments from billionaires like Musk would boost his appeal to voters.
Musk is seeking permission for SpaceX’s Starlink to operate in what will be by far its largest market. Starlink has already received assurances from the Indian government that it will be able to start operating in the country as early as the third quarter of this year, Bloomberg reported earlier.
Tesla has also been trying to enter India for years, but high import taxes have had a deterrent effect – something Musk has repeatedly emphasized. India last month lowered import taxes on electric vehicles from foreign automakers that pledge to invest at least 41.5 billion rupees ($497 million) and start production of electric vehicles in a local factory within three years.
A significant investment from Tesla would allow Musk to tap India’s booming electric vehicle market and counter slowing demand for electric vehicles elsewhere. Tesla watchers, however, would like to see action on the ground after seeing delays in previously announced projects, such as the construction of a huge factory in Mexico.
—With help from Dana Hull and Bruce Einhorn.
(Adds details about Tesla from third paragraph.)
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