This hiring push follows Musk's one-on-one meeting with Modi, sparking speculation about whether it was a business or official meeting. Musk has been exploring opportunities in India, with reports last year indicating that Tesla was scouting locations for both factories and showrooms.
In addition to electric vehicles, Musk has also sought to introduce his satellite internet service, Starlink, in India. The service, which aims to provide internet access in remote areas via low Earth orbit satellites, has faced policy debates and security concerns. However, communications minister Jyotiraditya Scindia stated in November that Starlink could operate in India if it adheres to security regulations.
Musk had planned a trip to India in 2024 to announce major investment plans but later canceled, citing his “very heavy Tesla obligations.” Despite India’s electric vehicle market being relatively small, it presents a growing opportunity for Tesla, especially as the company faces increased competition from China and a slump in global sales.
Tesla's progress in India has been hindered by steep import taxes on electric vehicles, which Musk once criticized as among the highest in the world. However, India recently reduced import duties on EVs for companies willing to invest $500 million and establish local production within three years. This move follows similar tariff reductions for high-end motorcycles, benefiting U.S. manufacturer Harley-Davidson.
Tesla’s entry into the Indian market signals a growing focus on local production, potentially altering the country’s EV landscape.