21/05/2026
According to reports, discussions between Tesla and Indian authorities stalled over concerns related to import duties, local manufacturing commitments, and investment conditions. The proposed plant plan has now reportedly been cancelled after both sides failed to reach common ground.
India has been pushing global EV makers to manufacture locally under its “Make in India” strategy, while Tesla was seeking lower import taxes before committing to large-scale production.
The development comes at a time when India’s electric vehicle market is growing rapidly, attracting global competition and fresh investment interest.