Tesla has entered the Indian electric vehicle (EV) market with much attention but has received just over 600 orders since starting sales in mid-July.
Bloomberg reports Tesla plans to ship between 350 and 500 cars in 2024, with the first batch arriving from Shanghai in early September.
Tesla Targets Premium Buyers in India
Due to high import taxes, Tesla’s Model Y is priced around $70,000, making it a luxury option for buyers.
Deliveries are currently limited to cities where Tesla has stores: Mumbai, Delhi, Pune, and Gurugram.
With EVs making up only 4% of all car sales in India, Tesla is focusing on wealthy, environmentally aware customers.
Tesla Faces Challenges in Europe
While India offers new chances, Tesla’s sales in Europe have dropped sharply. August data shows big declines: France (-47.3%), Sweden (-84%), Denmark (-42%), Netherlands (-50%), and Italy (-4.4%).
Tesla partly blames a production shift for a new Model Y, Europe’s top-selling car in 2023, but the problem seems deeper.
Political Controversies and Competition Affect Tesla
Tesla’s difficulties are also worsened by competition from Chinese EV maker BYD and negative reactions to Elon Musk’s political views.
Musk’s public support for Donald Trump and some European far-right groups has turned away some customers.
Some Growth in Southern Europe and Norway
Despite overall declines, Tesla’s sales grew in Spain (+161%), Portugal (+28.7%), and Norway (+21.3%), offering hope in these markets. Still, Tesla’s overall position in Europe is weak.
What’s Next for Tesla?
Tesla’s move into India is a bold attempt to enter a new market but comes with challenges.
Meanwhile, the sharp drop in Europe shows risks from political issues, changing buyer opinions, and tough competition.
How Tesla handles these challenges will shape its success worldwide in 2025.
