Explainer- First India then China, what does Tesla owner Elon Musk want? – Read

Why is Musk confused?

Actually, Tesla cars are banned in government buildings and sensitive places in China. Earlier, the ban on Tesla cars was usually limited to military bases, but later it was extended and the entry of Tesla cars has reportedly been banned in China’s highway operators, local authority agencies and cultural centers as well. For which Musk has discussed with the Chinese PM and senior officials about removing such restrictions on Tesla cars. There is a continuous decline in Tesla sales in China. Tesla has been facing tough competition from Chinese EV manufacturers for the last few years. Elon Musk was going to come to India to give competition to China’s BYD, but China was also upset with his plan to come to India. Due to which China had recently announced a big cut in prices to increase the sales of vehicles.

For this reason Elon Musk went to China

Due to tremendous competition in China, the price of electric vehicles is low. This is the reason why the companies there want to earn huge profits by exporting as much as possible. He has also given sleepless nights to Elon Musk’s company Tesla. Tesla’s largest plant in the world is in China. The situation has become such that the company has to reduce its prices in China. Musk, who had postponed visiting India, has suddenly reached China. China is the second largest auto market in the world and the company Tesla is facing many challenges there. Tesla entered the Chinese market about a decade ago and has sold more than 17 lakh cars so far. But now this market is in danger.

Why did you cancel the tour of India?

Musk had recently postponed his proposed visit to India. In India, he was going to meet Prime Minister Narendra Modi to discuss plans to start a Tesla factory in the country. Musk is visiting Beijing at a time when his Tesla market in China is threatened by rising sales of local EV vehicles. In such a situation, he canceled his plan to come to India and went on a tour to China.

Tesla’s market in China

Tesla was once the market leader in China, however, this place has now been taken by Chinese EV company BYD. Tesla has sold more than 17 lakh cars in China. Its factory in Shanghai is the largest Tesla factory in the world. Tesla also wants to set up its factory in India. For this, Musk was going to come to India last week, but due to some reasons he canceled his plan to come to India.

Why is there competition with BYD?

There is competition between Tesla and BYD because both are electric vehicle (EV) manufacturing companies.In the year 2023, BYD had produced more cars than Tesla.Most of BYD’s cars sell at lower prices than Tesla.BYD is one of the world’s largest EV battery makers and Tesla also uses BYD battery packs for Model Y variants at its Berlin plant. China’s BYD currently dominates the global EV market. BYD has become the world’s number one EV manufacturing company by defeating Tesla.

China stunned by Tesla’s arrival in India

It is noteworthy that keeping in mind Musk’s long standing request, the Indian Government has recently approved the new electric vehicle policy. Earlier, India had stopped many EV vehicles from coming to India. Now Tesla was also expected to come to India. In such a situation, China is also afraid that Tesla and other companies might shift to India from there. Some companies have closed business in China and China is going through a difficult period. Also, China-India relations have not been good regarding the border dispute.

Why do you want to come to India and what are the speculations?