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As Sales Drop, Tesla Makes a Big Gamble on India

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Tesla is finally entering India. The all-electric carmaker will open its first showroom in the country on July 15 in Mumbai, marking a long-awaited entry into one of the largest and fastest-growing automotive markets in the world.

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 Global Troubles

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: A Lifeline Market

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