HOW ELON MUSK’S FORAY INTO INDIA WAS 9 YEARS IN THE MAKING
India is in the midst of its election season. Prime Minister Narendra Modi is a busy man. But amid all this, he will make time to meet a “fan” – probably his most high-profile one – Elon Musk.
The billionaire’s upcoming visit to India on 21 April marks a significant milestone in the burgeoning relationship between the tech tycoon and the world’s fastest-growing economy. He is scheduled to meet with Modi on 22 April and the discussion is poised to yield substantial outcomes for both Tesla and Starlink’s ventures in India.
According to a report by Moneycontrol, a meeting between PM Modi and Musk is anticipated to herald Tesla's highly anticipated foray into the Indian market. Quoting an anonymous senior government official, the report suggests that Tesla's entry announcement is expected on 22 April.
Musk himself confirmed his visit via his microblogging platform, expressing anticipation for his meeting with the PM.
But this is not the first instance of Musk being outspoken about his love for India and the promises the subcontinent holds for him and his endeavours. Musk and India's affair started long back when he founded Tesla and started sourcing material from India. It came into the spotlight when PM Modi toured a Tesla manufacturing facility in California back in 2015.
We take a look at how the Musk-India relationship has evolved.
2024: Musk's advocacy for India's UNSC seat
In January, Elon Musk renewed his engagement with India by advocating for the country's inclusion in the United Nations Security Council (UNSC). Expressing astonishment at India's exclusion from a permanent seat, Musk called India not having a permanent seat in the UNSC “absurd”. He said that nations with excess power don't want to relinquish it.
"At some point, there needs to be a revision of the UN bodies. Problem is that those with excess power don't want to give it up. India not having a permanent seat on the Security Council, despite being the most populous country on Earth, is absurd. Africa collectively should also have a permanent seat imo,” he said in a most from X.
Now ahead of Musk’s India visit, the US offered support for reforms to United Nations institutions, including the UNSC.
When asked about Tesla CEO’s statement regarding India’s lack of a permanent seat at the UNSC, Vedant Patel, US state department principal deputy spokesperson said in a press briefing, “The president has spoken about this before in his remarks to the UN General Assembly, and the Secretary has alluded to this as well. We certainly support reforms to the UN institution, including the Security Council, to make it reflective of the 21st-century world that we live in.”
“I don't have any specifics to offer on what those steps are, but certainly, we recognise that there is a need for reform, but I will leave it at that for now.”
2024: SpaceX and ISRO Collaboration
Also in January, following the success of the Indian Space Research Organisation's (ISRO) Chandrayaan-2 mission, Musk’s space company, SpaceX, announced its collaboration with ISRO. SpaceX revealed plans to assist ISRO in launching a 4.7-tonne communication satellite using its Falcon 9 rocket. This collaboration further solidified Musk's presence in India's space endeavours.
2024: Starlink’s license in India
Simultaneously, Musk’s satellite internet service, Starlink, geared towards providing global internet coverage, is poised to obtain a license to operate in India, pending resolution of regulatory issues. This development underscores Musk's expanding footprint in India's telecommunications sector.
2023: Musk's second encounter with Modi and Tesla's plans
In June 2023, Modi met with Elon Musk during a US visit. Following the meeting, Musk expressed his enthusiasm for India’s future, hailing it as a country with unparalleled promise. Musk’s admiration for Modi was evident as he declared himself a "fan" of the Prime Minister.
Tesla executives engaged in discussions with Indian officials, proposing the establishment of a Giga factory aimed at localising component sourcing and manufacturing vehicles for domestic and international markets.
This signified Tesla's commitment to swiftly finalise the factory's location, marking a strategic move towards expanding its manufacturing presence in India.
2022: Tesla’s hurdles and regulatory challenges
In 2022, Tesla faced hurdles in its plans to establish an electric vehicle (EV) production plant in India. Despite invitations from states like Telangana, Maharashtra, and West Bengal, Musk cited ongoing challenges with the government. Regulatory barriers, including existing tax regulations, posed obstacles to Tesla's plans.
In response, Vivek Johnri, chairman of India's Central Board of Indirect Taxes and Customs, suggested importing partially assembled models to circumvent these challenges. Ultimately, Tesla suspended its EV production plans in India, disappointing enthusiasts.
But a lot has changed since.
2021: Tesla's entry and strategic lobbying
In January 2021, Tesla made its official entry into the Indian market by registering Tesla India Motors and Energy in Bengaluru. Throughout the year, the company strategically lobbied for reduced import duties and tax incentives, securing approval in December to launch seven electric models in India. This marked a significant step towards Tesla's establishment in the Indian automotive landscape.
2020: Musk's teasing tweet
In October 2020, Elon Musk teased enthusiasts with a tweet responding to photos of Tesla India t-shirts, hinting at the possibility of action in the following year.
This playful interaction fueled speculation among fans eagerly awaiting Tesla's presence in India.
2019: Musk's indicative response
During a Tesla Model Y exhibition, Musk hinted at potential developments in India in response to a query from a tech enthusiast on Twitter.
While not a definitive confirmation, Musk’s response indicated favourable intentions toward establishing a presence in India, generating optimism among followers.
2015: Modi's visit to Tesla
Nearly a decade ago, during Modi's visit to the US, he toured the Tesla Motors factory in California. It was during this visit that Modi met Musk for the first time, engaging in extensive discussions and receiving a special tour of the facility. This initial encounter laid the foundation for future engagements between Musk and India.
With inputs from agencies
2024-04-18T06:50:53Z dg43tfdfdgfd