Musk’s India relationship moves beyond talk

Hi, this is written from London, the executive editor of CNBC International. This week, I’m examining Elon Musk’s relationship with India, why he took action without talking, and what’s really dangerous.
This report is from this week’s “Inside Inside” newsletter of CNBC. As you can see? You can subscribe Here.
Great story
India has long been on Elon Musk’s radar. However, for years, the relationship has been played mostly in headlines and half -starting.
Do you remember 2024? Musk was ready to fly to the new Delhi to meet Prime Minister Modi – until he canceled at the last minute and went to Beijing instead.
Anyway, let’s go back here. Tesla pointed out a serious interest in the Indian market in 2021, but when the negotiations on import tasks stopped, he reduced his plans to the shelf. Musk’s satellite internet initiative, Starlink, began to receive pre -order in 2021, but the regulatory barriers had to pause after forcing the company to repay it. For a better part of the last decade, Musk’s ambitions of India remained exactly.
He finally begins to change.
In recent weeks, it was interesting for the Musk-India relationship. Tesla opened its first showroom at Mumbai’s bandra Kurla complex. Starlink received the necessary regulatory approval to start commercial services in India. And all of this points to a wider change in his global strategy only weeks after Musk’s removal of him from US President Donald Trump.
Elon Musk met with Indian Prime Minister Narendra Modi on 13 February 2025, Blair House in Washington, USA.
Anatolia | Anatolia | Getty Images
So why sudden acceleration?
At one level, India offers Musk a new runway for growth at a time when relations in China and the United States become more complex. For the Indian government, attracting investment from one of the highest profile entrepreneurs in the world is a gain, especially in clean technology and digital infrastructure, the country’s “Make in India” ambitions perfectly. However, even though the titles are dazzling, the reality on the ground shows that things are only in the early stages.
Let’s look at Tesla’s current situation in India. The idea is not the mass market dominance, but at least not yet. It is about planting a flag in the premium segment. Tesla’s globally most popular car Model Y officially landed in India, and about 7 million rupees (about 79,000 dollars) were priced. To put this on the perspective, India’s best -selling cars often cost some of it. India is not a market that fits one body. In addition to the big value -based market, there is a growing luxury segment in which global brands are strongly competing to attract attention. BMW, Mercedes and Audi are expanding electric vehicle offers in India, and Tesla is now joining the fight.
Mumbai showroom is just the first step. India’s new policy framework reduces import duties for companies that want to produce locally. In fact, in April 2024, Tesla reportedly started to find its places for a potential home factory in India with an investment of up to $ 3 billion. This would indicate a basic change, potentially more accessible home models, open the door, increase the supply chain activity and create new jobs. But now, it’s a slow structure, not sprint.
And then there is charging difficulty. Adoption in India is different from other markets. Two and three -wheeled devices dominate the view of the electric vehicle and are charged at home using most standard outputs. Therefore, you have not yet improved the expanding public fast charging infrastructure you see in India, China or the United States.
Fast charging for Tesla’s luxury buyers cannot be negotiated. They are waiting for convenience, and this means that Tesla should invest in cities such as Mumbai, Delhi and Bengaluru, especially in which demand is concentrated. Tesla began to hire these roles in India, but it will take time to establish this network.
Antennae upgrade
Ev Push, as well as Starlink’s entry into India may be dealing with a completely different market: rural internet. Cheap mobile data has fueled India’s internet explosion in the last decade, but rural areas are insufficient, especially in areas where fiber flooring is expensive and logistically challenging. Starlink’s solution is to teleport the Internet directly from space and skip these obstacles.
However: satellite internet is not cheap. Starlink’s service usually costs $ 100 a month, which is significantly more than that most Indian consumers pay for the Internet. This shows that the real game has rural schools, healthcare providers and government agreements and partnerships with distant businesses, which need connection independently of the cost. Starlink’s cooperation with Telecom giants such as Reliance Jio and Bhart Airtel has shown that it is a collaborative approach rather than the destructive.
The timing of all this is also interesting. Musk’s return to India comes immediately after the public sprinkle with Trump in June following his disputes on tariffs and subsidies. It is controversial whether these two things are directly connected, but it is difficult to ignore the coincidence. At least, it is part of a wider international diversification strategy for Musk, which brings it further than the political circulation of US relations.
For Indian consumers, the arrival of Tesla and Starlink means new technological options, but for now, these are primarily targeted by rich and high -needed rural areas. For investors, Musk plays signals relying on the country’s long -term growth story. And while watching other global technology and home giants from the edge, Musk’s success can mark the beginning of a new foreign investment wave in India.
Musk spoke about India for years. This time the difference? The ground is preparing. The next few months will show whether this is the beginning of something permanent or whether there is another chapter in the complex, stop-stop relationship.
Best TV choices in CNBC
Standard Chartered’s Rajesh Kannan, President of Retail Banking, said that high -net value individuals in India globally diversified their investments globally and progress towards alternative assets such as private markets.

Indian Energy Minister Hardeep Singh Puri said that if India and other countries stop buying Russian oil, prices may rise to $ 130 per barrel.
You need to know
The June inflation in India is cool up to 2.1%. Inflation rate published by the Indian government on Monday For more than six years, the lowest has fallen below 2.5% expected in the Reuters survey of economists. Food prices fell 1.06% for the month.
Tesla’s model is released in India. The electric SUV will start at $ 69.770 – the price of the same model is significantly higher than $ 49.990. The inconsistency may be due to the upright tariff in India’s home imports.
Fuel switches at the center of Air India Crash Research. According to the Reuters report, the first report of India’s plane crash investigation office on Saturday said that the fuel cutting switches on the malicious Air India aircraft were turned upside down and deprived of the power engine.
– Yeo Boon Ping
In markets
The Indian markets were trading low on Thursday.
Benchmark Nifty 50 0.12%, while the BSE Sensex index decreased by 0.16% from 12:15 (2:45 am).
Benchmark’s 10 -year Indian government bond return fell by 6,308%.
– Amala Balakrishner
Appearance
July 24: HSBC Flash PMI in July
Every weekday, CNBC’s “Inside Inside” news show offers news about the developing power center businesses and people behind the rise and market interpretation. Capture shows and emphasis on Youtube Here.
ShowTimes:
WE: Sunday-Prinsday, 23:00-0000 meat
Asia: Monday-Cuma, 11: 00-12: 00 Sin/hk, 08: 30-09: 30 India
Europe: Monday-Cuma, 0500-06: 00 CET


