Expect Tesla to delay its India ambitions

Rather of establishing a new manufacturing facility, US electric vehicle manufacturer Tesla will instead use its current facilities to increase output.

Tesla’s move might potentially postpone its ambitions in India, where up until this past week, the automaker was anticipated to declare a multibillion dollar commitment to produce reasonably priced electric vehicles in the nation.

“We’ve made updates to our portfolio of future vehicles to expedite the introduction of new models, with the originally stated commencement of production in the second half of 2025. Therefore, if not later this year, we anticipate it to be more like early 2025. In a post-earnings call on Tuesday, Tesla CEO Elon Musk said, “These new vehicles, including more affordable models, will use aspects of the next-generation platform as well as aspects of our current platforms, and we’ll be able to produce on the same manufacturing lines as our current vehicle lineup.”

Therefore, it won’t need a huge new production line or new plant; instead, it can be produced much more effectively on our present manufacturing lines. And when fully achieved, we believe this should enable us to reach a capacity of over 3 million cars,” he said.

Head of Tesla’s engineering Lars Moravy said that there are “some risks” associated with new production lines and manufacturing techniques, and the company made a “big shift” to use its capabilities to produce affordable cars quickly and effectively for the time being. Tesla’s shares increased 12% in after-hours trading as a consequence of investors applauding the company’s cautious stance, even if the company’s quarterly earnings fell short of expectations.

The present government, which changed its EV policy and reduced import duties to draw in foreign manufacturers, would suffer greatly if Tesla chooses to delay its India plan. Musk then said that he will be traveling to India to meet with Prime Minister Narendra Modi.

This gave rise to speculation that Musk might declare his entry into the Indian market, greatly assisting Prime Minister Modi in his bid for a third term in the current general elections.

Shares of the company rise 12%

Head of Tesla’s engineering Lars Moravy said that there are “some risks” associated with new production lines and manufacturing techniques, and the company made a “big shift” to use its capabilities to produce affordable cars quickly and effectively for the time being. After-hours trading saw a 12% surge in Tesla shares, a sign that investors were appreciating the company’s cautious stance.

A blow to the present administration

It would be a severe blow to the present administration, which changed its stance on electric vehicles (EVs) and reduced import duties in an effort to draw in foreign manufacturers, if Tesla decided to delay its plans in the nation. Elon Musk said that Tesla’s CEO would visit India and meet with Prime Minister Narendra Modi in response to this development.