Elon Musk's India Visit Likely to be Postponed Amid Scheduling Conflict with Tesla Earnings Call

Tesla CEO Elon Musk's highly anticipated visit to India, originally planned for April 21-22, is likely to be postponed due to a scheduling conflict with the company's upcoming investor call on April 23 to discuss earnings. Musk was expected to meet with Indian Prime Minister Narendra Modi during the visit and announce significant investments in the country, potentially ranging from $2-3 billion with a roadmap for up to $20-30 billion.

The visit was seen as a major opportunity for both Musk and Modi. For Musk, securing permission for SpaceX's Starlink satellite internet service to operate in India, which would be its largest market, was a key goal. Modi, who is currently campaigning for re-election, aimed to showcase his ability to attract foreign investment and modernize the country's cities by having Tesla establish a presence in India.

While details of Musk's India plans, including potential announcements regarding Starlink's satellite-based broadband service, were expected during the visit, the postponement means these details may not be revealed as initially anticipated. Starlink has already received assurances from the Indian government that it can start operating in the country in the third quarter of 2024.

Why this matters: Tesla's expansion into India, the world's fastest-growing major economy, would be a significant boost to Modi's efforts to make India a global manufacturing hub. Electric vehicle sales in the country are expected to grow significantly in the coming years, despite currently making up less than 1% of total vehicle sales.

However, Tesla has faced challenges in the past, including India's high import taxes and local ownership requirements for telecom service providers. The postponement of Musk's visit suggests the need to resolve these issues before any major announcements or investments can be made.

The timing of the meeting underscores the high stakes for both Musk and Modi. A sizable investment by Tesla in local manufacturing would allow Musk to tap into India's booming electric vehicle market. For Modi, Tesla's presence in India would showcase his ability to attract foreign investment and modernize the country's cities as he seeks re-election.

Key Takeaways

• Elon Musk's India visit likely postponed due to Tesla earnings call conflict.
• Musk aimed to secure Starlink satellite internet service approval and announce investments.
• Tesla's India entry would boost Modi's efforts to make India a manufacturing hub.
• India's high import taxes and local ownership rules pose challenges for Tesla.
• Timing of meeting is crucial for both Musk and Modi's political and business goals.