Tesla and SpaceX CEO Elon Musk congratulated Prime Minister-designate Narendra Modi on his victory in the 2024 general elections in India. In a post on social media platform X (formerly known as Twitter), Musk extended his well-wishes to Modi and expressed his eagerness for his companies to undertake exciting projects in India. This gesture comes amid growing anticipation of Tesla’s entry into the Indian market, reflecting a potential $3 billion investment in the country.
Modi’s Third Term and BJP’s Electoral Triumph
Narendra Modi’s Bharatiya Janata Party (BJP) emerged as the single largest political party in the recently concluded Lok Sabha elections, securing 240 out of the total 543 seats. Despite not achieving a majority on its own, the BJP-led National Democratic Alliance (NDA) garnered a total of 293 seats, ensuring a comfortable majority to form the government. The Indian National Congress, the main opposition party, won 99 seats.
Modi’s upcoming swearing-in ceremony marks his third consecutive term as Prime Minister, an achievement that has garnered congratulations from numerous global leaders. Among them are US President Joe Biden, Russian President Vladimir Putin, British Prime Minister Rishi Sunak, and French President Emmanuel Macron.
Elon Musk’s Enthusiasm for India
Congratulations @narendramodi on your victory in the world’s largest democratic elections! Looking forward to my companies doing exciting work in India.
— Elon Musk (@elonmusk) June 7, 2024
Elon Musk’s tweet read, “Congratulations @narendramodi on your victory in the world’s largest democratic elections! Looking forward to my companies doing exciting work in India.” This message, posted three days after the election results, highlights Musk’s optimism about the potential for Tesla and other ventures in India.
Musk’s plans to establish a manufacturing presence in India align with the country’s recent policy changes aimed at attracting foreign investment. Earlier this year, the Indian government announced reduced import taxes on certain electric vehicles (EVs) for carmakers committing to invest at least $500 million. This move is designed to draw global players like Tesla, providing a conducive environment for manufacturing and innovation in the EV sector.
Anticipated Tesla Investment and Policy Support
Speculation is rife about Tesla’s first Indian plant, with possible locations including Maharashtra, Gujarat, or Tamil Nadu. The potential $3 billion investment by Tesla is seen as a significant boost to India’s EV market, aligning with the government’s goal to promote sustainable and clean energy solutions.
India’s electric vehicle policy, announced earlier this year, offers import duty concessions to companies establishing manufacturing units with a minimum investment of $500 million. Under this policy, companies can import a limited number of vehicles at a reduced customs/import duty of 15 percent on vehicles priced at $35,000 and above for a five-year period from the date of issuance of the government’s approval letter.
Musk’s Previous Engagements with Modi
Elon Musk’s interest in the Indian market is not new. In 2021, Musk hinted at Tesla’s potential manufacturing plans in India, contingent on the success of imported vehicles in the country. His recent interactions with Modi, including a meeting during Modi’s US visit in 2023, have strengthened this interest. During their meeting, they discussed various issues, including energy and spirituality, reflecting a multifaceted relationship beyond business interests.
Musk had initially planned to visit India between April 20 and 22 this year, but the trip was postponed due to heavy obligations at Tesla. He expressed his intention to reschedule the visit for later this year, emphasizing his commitment to exploring opportunities in India.
Global Leaders Congratulate Modi
Apart from Elon Musk, dozens of businessmen and world leaders have congratulated Narendra Modi on his election victory. The global congratulatory messages underscore Modi’s significant role on the world stage and the international community’s interest in India’s political stability and economic potential.
US President Joe Biden, Russian President Vladimir Putin, British Prime Minister Rishi Sunak, and French President Emmanuel Macron are among the prominent leaders who have extended their best wishes to Modi. Their messages reflect the importance of India in global geopolitics and the anticipation of continued collaboration under Modi’s leadership.
Elon Musk’s congratulations to Narendra Modi and his expressed enthusiasm for expanding Tesla’s operations in India highlight the growing synergy between one of the world’s leading entrepreneurs and the Indian government. As India prepares for another term under Modi’s leadership, the potential for significant investments and advancements in the EV sector seems promising. With supportive policies and a favorable business environment, India’s relationship with global innovators like Musk is poised for a dynamic and fruitful future.
