Tesla Officially Abandons India Factory Plan

On May 19, Tesla shares closed down 2.90%, with a trading volume of $21.258 billion, ranking third among all U.S. stocks by trading value for the day. India’s Minister of Heavy Industries, K. N. Balagopal (Kumaraswamy), confirmed that Tesla has officially abandoned its plan to build a factory in India. Analysts noted that this decision was primarily driven by several factors: significant gaps in India’s local supply chain and industrial ecosystem; a deadlock in negotiations between Tesla and the Indian government over whether tariff reductions should precede factory construction or vice versa; inadequate local infrastructure; a mismatch between the purchasing power of India’s automotive market and Tesla’s premium product positioning; and uncertainties and policy risks associated with India’s business environment.