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Elon Musk breaks silence, reveals why Tesla is out of India

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Well-known member
After four days and innumerable questions on why India was missing from Silicon Valley-based Tesla Motor’s global plans, founder and CEO Elon Musk broke his silence on social network Twitter saying that the regulations existing in the country were not conducive for the electric carmaker to do business here.

On May 26, Musk had Tweeted a map of the world showing every location where the company either already has or will install its superchargers (charging stations) signifying where it was selling its cars.
As not a single location in India got a mention in the list shared by Musk, it caught the attention of several Twitterati who questioned Musk on it.

“Would love to be in India. Some challenging government regulations, unfortunately. Deepak Ahuja, our CFO, is from India. Tesla will be there as soon as he believes we should,” Musk tweeted on Wednesday, in response to a question.

Musk, who is a voracious user of Twitter, has on several occasions in the past made hints at the company’s willingness to come to India. He even suggested that it would be more beneficial to build a Gigafactory (giant lithium-ion battery factory) in the country than setting up a plant to build Tesla cars here.

However, after heightening interest and even opening orders of the company’s most affordable Model 3 sedan in India in April 2016, Musk last year said that the company’s local sourcing norms for single brand retail were keeping the company out.

“Maybe I'm misinformed, but I was told that 30 per cent of parts must be locally sourced and the supply doesn't yet exist in India to support that,” Musk tweeted in May last year.

Tesla as a company does not just manufacture cars and the batteries that go in them, but also controls the retail and after-sales part of the business.



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But there are so many Hondas and Toyotas and Hyundais running in India. Are really 30 percent of the parts local?
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