Musk postpones India trip due to Tesla obligations

Tech billionaire Elon Musk announced on Saturday that he was postponing his visit to India, during which the Tesla boss was due to meet Prime Minister Narendra Modi and discuss major investment plans.

The news came a day after Musk’s electric car maker announced the recall of nearly 3,900 Cybertruck vehicles due to a problem with the accelerator pedal that can lock up, increasing the risk of accidents.

“Unfortunately, Tesla’s very onerous obligations require that the India visit be postponed, but I look forward to making it later this year,” he said in a message posted on his social network X.

Media reports had suggested that the trip would begin on Sunday and last two days, during which Mr Musk would meet Mr Modi and companies in the aerospace sector.

Tesla is reportedly scouting for factory locations in India after the government last month reduced import taxes on electric vehicles for international automakers who pledged to invest $500 million and launch a local production within three years.

This policy also allows companies to import up to 8,000 electric vehicles each year priced at or above $35,000 (around 32,800 euros), benefiting from greatly reduced import duties.

Indian media reported that Tesla may first import cars from its Berlin factory until it makes a final decision on where it would set up a production line.

Experts say the Indian market is unlikely to offer a breath of fresh air to the company, mainly due to the high price of its cars.

Tesla’s cheapest model, the Model 3 sedan, sells for around $39,000 (nearly 36,500 euros) in the United States.

Musk’s current business interests in India are limited to social network reviews.

Musk, who has described himself as a fan of Modi, last visited India in 2007, calling the country “incredible” and saying the Taj Mahal “is truly a wonder of the world.”

© 2024 AFP

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