After A Tough Year In China, And Plummeting Sales, Can Tesla’s India Gamble Steer It Back On Track Amid Musk’s Controversies?

Anyone following Tesla—and by default, Elon Musk—might remember the much-anticipated meeting between Musk and Indian Prime Minister Narendra Modi last year. It was set to be a high-profile event, with the Indian government treating it as a major milestone. Instead, Musk canceled last minute, citing a Tesla board meeting, and, somewhat ironically, ended up in China instead.

Fast forward to today, and things finally seem to be gaining momentum. Perhaps it’s the outcome of the Trump-Modi-Musk meeting at the White House, but Tesla has officially started recruiting in India, signaling concrete plans to enter the country’s electric vehicle (EV) market.

A LinkedIn job post reveals that Tesla is hiring for 13 positions across Mumbai and Delhi, spanning both customer-facing and back-end roles—service technicians, advisors, customer engagement managers, and delivery operations specialists.

Tesla has toyed with the idea of entering India for years, but sky-high import duties kept it on the sidelines. However, a recent policy shift—lowering the basic customs duty on luxury EVs priced above $40,000 from 110% to 70%—has made the Indian market more enticing.

That said, while Tesla’s hiring activity suggests preparations are underway, there’s still no official word on when its vehicles will hit Indian roads. Analysts predict Tesla may start by importing cars before committing to local manufacturing, depending on demand and regulatory incentives.

This move also aligns with broader trade discussions. Following the Modi-Musk meeting, US President Donald Trump hinted at ongoing negotiations between India and the US to balance trade relations.

Tesla’s India Manufacturing Plans Gain Momentum

Elon Musk’s Tesla has also officially begun scouting for land to set up an electric vehicle (EV) manufacturing plant in India, with Maharashtra emerging as its first choice, according to sources familiar with the matter. The Maharashtra government has reportedly offered sites near Chakan and Chikhali—both close to Pune—to woo Tesla.

Chakan, in particular, is one of India’s biggest automotive hubs, home to industry giants like Mercedes-Benz, Tata Motors, Mahindra & Mahindra, Volkswagen, and Bajaj Auto. However, while initial talks have taken place, nothing has been finalized yet. Tesla is being meticulous about selecting the right location, assessing key factors such as proximity to a port for easy exports.

The Maharashtra government is treading carefully, having previously lost high-profile investments—like the now-abandoned Vedanta-Foxconn chip venture and the Tata-Airbus aircraft project—to other states. With intense competition among states to secure Tesla’s investment, the final decision is still up in the air.

The EV Policy Shift

Musk has been hinting at Tesla’s India entry for years. Back in 2021, the company had even finalized plans for a showroom and an office in Mumbai’s Lower Parel. However, the plans were shelved after Tesla failed to convince the Indian government to reduce hefty import duties on its vehicles.

At the time, Tesla had lobbied for a tax cut on fully assembled EVs priced below $40,000—from 60% to 40%—and promised to set up a factory only after testing the demand for its cars in India. The government, however, stood firm and refused to budge.

In 2023, Tesla officials met with Prime Minister Narendra Modi and government representatives to explore sourcing components locally. Later that year, Tesla leased office space in Pune, further fueling speculation about an imminent India entry. Musk and Modi even met twice in 2023, adding to the anticipation.

Then came the game-changer. In 2024, the Indian government rolled out a revised EV policy, offering duty concessions to companies willing to invest at least $500 million in local manufacturing. This policy shift appears to have reignited Tesla’s interest, bringing the company closer than ever to making India its next big manufacturing destination.

Tesla Sales Are Slipping

A little over two years ago, many argued that Tesla’s market share was bound to decline—not just because of intensifying competition or supply chain issues but because of Elon Musk’s increasingly polarizing public persona. At the time, some dismissed this as an overreaction insisting that Musk’s Twitter antics wouldn’t impact Tesla’s business because revenues were still growing year after year.

Fast forward to today, and the numbers tell a different story.

The Data Tells the Story

Tesla’s latest figures confirm what many had speculated – the company’s sales are in decline. While the broader EV market continues to expand, Tesla’s 2024 deliveries have dropped significantly compared to the previous year. It’s not just the natural outcome of more competition—there’s mounting evidence that Musk’s actions have actively alienated potential buyers.

To put it in perspective, consider this, Tesla’s brand was once synonymous with cutting-edge innovation and futuristic ambition. Now, its image is increasingly tied to Musk’s unpredictable behavior and controversial political takes. The California New Car Dealers Association (CNCDA) recently reported that Tesla suffered its fifth consecutive quarterly decline in registrations, with a 7.8% drop in Q4 2024, leading to an overall 11.6% dip for the year.

Tesla’s decline can’t be blamed solely on a growing EV market. Other automakers are certainly stepping up their game, but Tesla’s drop in market share suggests a deeper issue—one that perhaps stems from the disconnect between Musk’s public persona and Tesla’s traditional customer base.

For years, Tesla was seen as more than just a car company; it was a movement. Owning a Tesla wasn’t just about driving an electric vehicle—it was about being part of a vision for a cleaner, tech-driven future. But as Musk’s public statements and political leanings have become increasingly divisive, some longtime supporters are distancing themselves from the brand.

This is not just about social media theatrics; it’s about brand perception. A company’s leadership can shape consumer sentiment, and Musk’s high-profile decisions—whether related to Twitter, Tesla, or his other ventures—are now visibly affecting Tesla’s bottom line.

At this point, it’s becoming harder to argue that Musk’s leadership style hasn’t impacted Tesla’s standing in the market. His influence goes beyond engineering and product development—he is the face of the brand. And right now, that brand appears to be losing its shine.

Elon Musk’s Political Stances Are Costing Tesla More Than Just Reputation

Elon Musk—the billionaire CEO of Tesla, SpaceX, and X Corp—has long been a polarizing figure, but his rightward political shift has now started affecting Tesla’s bottom line. Musk’s endorsements of far-right parties in Europe, controversial gestures during Trump’s inauguration, and accusations of election interference have left many Tesla customers re-evaluating their loyalty to the brand.

Tesla’s January sales plummeted across five major European markets—the UK, France, Sweden, Norway, and the Netherlands. In the U.S., California, Tesla’s largest market, also saw a drop in registrations. While competition in the EV space is intensifying, surveys suggest Musk’s politics could be playing a significant role in driving customers away.

The challenge for Tesla is that its brand has always been closely tied to Musk himself. Research has consistently shown that when CEOs are deeply enmeshed with their company’s identity, their personal actions can have a direct impact on brand perception. Musk’s public persona—once admired for its boldness and innovation—now seems increasingly out of step with Tesla’s traditional customer base, particularly in progressive regions that prioritize sustainability and social responsibility.

This tension has led to interesting responses from Tesla owners. Some have resorted to placing apology stickers on their cars to distance themselves from Musk’s behavior while still holding onto their expensive purchase. Others may be reluctant to immediately switch brands due to the high financial commitment of buying an EV but could gradually shift away from Tesla when considering future purchases.

Loyalty Isn’t Blind

Tesla’s coming to India has undoubtedly created a lot of buzz in the Indian markets even as it hunts for the ideal location to finally park its factory.

Still, coming to the overall picture, even as the sales continue the downward spiral, a common misconception is that hardcore fans will always stand by their favorite figures, no matter what.

However, research suggests that devoted consumers can also be the most vocal critics when they feel betrayed. Some Musk loyalists may double down in support of him, reframing his statements as a defense of free speech. But for many others, the association between Tesla and Musk’s increasingly controversial stances is becoming too difficult to ignore.

The lesson here is this – brand loyalty should never be taken for granted. Even the most dedicated Tesla fans have their limits. If Musk continues alienating the very demographic that helped propel Tesla to success, the company could face an even steeper decline—not just in sales but in long-term brand equity.

Thus, despite Tesla long been synonymous with cutting-edge technology and industry-defining innovation with sales numbers declining in key markets, the company now faces a challenge that even its technological prowess may not easily overcome: rebuilding consumer trust.

Will Tesla Course-Correct?

As investor sentiment shifts, the coming quarters will be critical. Can Tesla separate its brand from Musk’s controversies, or will it continue down a path where leadership behavior overshadows product excellence? The answer to that question could determine whether Tesla remains the dominant force in EVs or finds itself gradually losing ground to competitors who better align with consumer expectations.