Comments on Elon Musk’s Decision of choosing China over India for Tesla’s Manufacturing

Indian-American entrepreneur Vivek Wadhwa criticized Elon Musk’s decision to choose China over India for Tesla manufacturing, citing risks in China and missed market dominance in India. Wadhwa, an academic and author, warned Musk about potential pitfalls in China and urged him to consider India, where he believes Tesla could have dominated the market by now. Musk’s planned visit to India was postponed, leading to speculation about his intentions. Shortly afterwards, he visited China and secured concessions for Tesla. Musk was scheduled to meet with Indian Prime Minister Modi and announce a significant investment, but he cancelled, citing heavy Tesla obligations. In China, however, Musk made progress in expanding Tesla’s presence, including discussions with Premier Li Qiang.

While Tesla’s ties to India had been strengthening, with expectations of a substantial investment, any announcement has been delayed. Indian officials remain hopeful for future investments, especially after recent changes to EV policies. However, foreign automakers have faced challenges in India, with Ford exploring alternatives to manufacturing and Toyota initially hesitating due to high tariffs. Despite the setbacks in India, Wadhwa believes that Musk’s decision to prioritize China over India could prove costly in the long run, both in terms of market dominance and potential risks associated with manufacturing in China.