As Sales Drop, Tesla Makes a Big Gamble on India
Invitations to the launch event began circulating on social media late last week. 'Launch Event. Exclusive Invite,' the sleek black cards read. 'Tesla Experience Center BKC.' The event is scheduled to take place from 11:00 a.m. to 12:30 p.m. local time, with guests asked to arrive early. The venue is located in Mumbai's upscale Bandra Kurla Complex.
As with most things Tesla, the invitation triggered a storm of reactions online, fervent excitement from fans, and sharp skepticism from critics. And it's no surprise. CEO Elon Musk's company is under enormous pressure, both financially and politically.
Tesla's sales have been declining for most of 2025, weighed down by a mix of aging models, intensifying global competition, and self-inflicted political damage. The company's current lineup includes the Model 3 sedan, the Model Y SUV (currently the world's best-selling electric vehicle), the Cybertruck, the Model S luxury sedan, and the Model X SUV. But Tesla hasn't launched a new passenger vehicle in years, and the lineup is beginning to show its age.
Meanwhile, legacy automakers and aggressive upstarts have closed the technology gap. General Motors, Ford, Volkswagen, Mercedes-Benz, BYD, NIO, and others are rolling out new electric vehicles at a furious pace, often priced more competitively than Tesla's core offerings.
Adding to the pressure is Musk's increasingly polarizing public persona. Once a cult hero for tech progressives and climate advocates, Musk has alienated much of Tesla's original customer base with his far-right political rhetoric and attacks on perceived 'woke' institutions.
The company is also facing significant macroeconomic headwinds. In the last three months, Tesla's overall sales have declined by 13.5%. President Donald Trump's trade war has crippled sales in Canada, forcing a desperate, deep price cut on the Model Y. And in the United States, demand for electric vehicles is expected to soften with the expiration of the $7,500 federal tax credit on September 30.
Against this tumultuous backdrop, the Indian market couldn't have come at a better time.
India is now the third-largest auto market in the world, behind China and the United States. Although EV adoption in India remains low compared to Western countries, the sector is growing fast, fueled by government incentives and a rising urban middle class.
Tesla has had its eye on India for years, but repeated attempts to enter the market were blocked by disputes over local manufacturing requirements and high import taxes. That breakthrough finally came in early 2025, after Musk met with Indian Prime Minister Narendra Modi during a state visit to Washington.
'Spoke to @elonmusk and talked about various issues,' Modi posted on X last April. 'We discussed the immense potential for collaboration in the areas of technology and innovation.'
Musk responded: 'I am looking forward to visiting India later this year!'
It was an honor to speak with PM Modi.
I am looking forward to visiting India later this year! https://t.co/TYUp6w5Gys
— Elon Musk (@elonmusk) April 19, 2025In anticipation of the launch, Tesla created an official account on X, @Tesla_India, posting a single tweet that read 'Coming soon.' Since Tesla does not have a factory in the country, it is expected that vehicles will be imported from its Gigafactory in Shanghai.
According to Bloomberg, Tesla has already shipped its first batch of vehicles, mostly Model Y SUVs. That hasn't stopped a wave of anticipation from building.
'Are bookings open?' one user posted on X.
Bookings are open?
— Nitish Bhatia (@NITISHBHATIA1) July 11, 2025
'Any word on when the first deliveries are?' another asked. 'Finally excited to see Tesla cars on Indian roads,' wrote a third. 'Any owners taking first deliveries, please record and share your thoughts or make a vlog.'
Awesome, finally excited to see Tesla cars on Indian roads. Any owners taking first deliveries, please record and share your thoughts or make a vlog. I will be willing to watch such videos as I am curious about the whole Tesla India experience. I'm sure lots of other folks are…
— Cybrtsla (@cybrtsla) July 11, 2025
'Finally the most cherished dream of @TeslaClubIN and car enthusiasts like me will end on July 15,' another user said. 'Finally long wait is over,' another added.
But skepticism remains. A ValueAct analyst warned: '$TSLA India will be even less competitive and profitable than Tesla China, which is getting clobbered.'
$TSLA India will be even less competitive and profitable than Tesla China which is getting clobbered https://t.co/yYvA5jZrUE
— Yaman Tasdivar (@ValueAnalyst1) July 11, 2025
Tesla's launch in India comes at a precarious time. The company is under pressure to reset the narrative, reignite sales, and reassure investors. Entering a new, massive market is a clear bet on growth. But it also raises questions about profitability, supply chain logistics, and whether Tesla can still lead the global EV race.
For now, the launch of Tesla's first showroom in Mumbai marks the start of a new chapter. The real test will be whether India becomes Tesla's next big success story, or just another headline in a rough year for Musk's empire.
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