Elon Musk’s Visit to India: Starlink Approval and Tesla Factory Discussions at Forefront of Agenda

Tech billionaire Elon Musk is set to visit India as Tesla and Starlink, two of his businesses, seek new opportunities in the country. Tesla, facing a sales slump in the US, is reportedly scouting factory locations in India while Starlink is set to receive initial approvals to operate in the country.

The visit, expected to begin as soon as Sunday and last two days, comes after months of courtship between Musk and Indian Prime Minister Narendra Modi. Musk and Modi met last June in New York, where Modi urged the entrepreneur to make significant investments in India, something Musk’s companies intend to do.

However, Tesla has faced challenges in India due to steep import taxes for electric vehicles and the absence of local manufacturing. Despite Musk’s admiration for India, it has not yet translated into significant investments in the country.

The Indian government recently eased regulations to attract greater foreign investment, including cutting import taxes on electric vehicles for global automakers that commit to investing $500 million and starting local production within three years. Tesla is reportedly scouting locations in at least three states for a factory.

Experts believe that the Indian market may not provide immediate benefits for Tesla due to the high price tag of its cars. As disposable incomes rise and electric vehicle production costs drop, there could be a growing demand for Tesla vehicles in India.

Musk’s present business interest in India is focused on X, the social media platform he acquired in 2022. The platform, formerly known as Twitter, faces challenges in India, including content takedown orders from the government. Musk has been navigating the strict rules for social media in India, stating that his companies will comply with the laws in the country.