Tesla used to be the shining star of innovation and sustainability, all due to the visionary ear of Elon Musk. Until recently, though, the company has faced a daunting image problem. The firm previously received titanic respect as a prophetic and innovative firm. Today, it looms as a second rail splitting the political landscape in the United States. This change has played a huge role in shaping Tesla’s business practices and stock performance. Its impacts reach well beyond America, including in major global markets like India.
Despite the launch of a new showroom in Mumbai’s Maker Maxity Mall, which is strategically located near Apple’s first store in India, Tesla has struggled to capture the Indian market. Reports indicate that Tesla’s electric vehicle (EV) sales accounted for a mere 2.5% of the total market share in 2024. This disappointing performance has left many of the company’s early supporters in India disillusioned and frustrated.
The Impact of Public Perception
Elon Musk’s reputational star has dipped pretty dramatically over the past few years. Musk was previously lauded for his contributions to new energy and electric vehicles. Now, thanks to his party affiliation and incendiary statements that polarized the electorate, he’s experiencing a pushback. This change has certainly had an impact on the competitive landscape for Tesla.
“People used to think Tesla is saving the world, it’s saving the climate, and this and that, it’s no longer there.” – Kawaljit Singh Bedi
Tesla’s difficulties in India are a part of bigger trends in the global auto industry where brand loyalty is fleeting. As consumers increasingly choose to spend their dollars with brands that align more deeply with their values, these challenges compound for Tesla.
Launching into a Disappointed Market
The mood when Tesla first announced its intent to enter India was full of optimism and hope. Optimism has soured considerably thanks to delays and what many see as mismanagement. Founding supporters of the brand have released video testimonials lamenting their experiences with the company. Many disappointed reservation holders are rightfully upset, having waited on line for years with little clear communication from Tesla.
Arun Bhatt, founder of India’s Tesla Club, is a hard core enthusiastic supporter. He reserved a Model 3 months in advance—literally years in advance—pre-reserving a Model 3 back in 2016. In many respects, the biggest disappointment to Ron was his notable absence from the showroom opening event.
“The least Tesla could have done was email all the people who reserved the car earlier and said, ‘Guys, we are going to have a special event for you’.” – Vishal Gondal
Unhappiness over the BSE digitization In fact, early supporters including Vishal Gondal and Vijay Shekhar Sharma have expressed this dissatisfaction. This has left years of build up, buyers who decided not to purchase a Tesla or are now regretting their purchase.
Reservation holders are understandably annoyed at the terrible communication over the fact that they can’t order their cars. As Bhatt described it, “There’s no communication about that at all. That’s why 80 percent of reservation holders are now determined to fail.” This attitude just shows how out of touch Tesla has become with its most loyal of customers in India.
A Niche Premium Market
Though daunting, the large Indian market leaves a window of opportunity for more premium electric vehicles in that country. Cox Analytics found that over just the first five months of 2025, sales of premium EVs experienced an astounding 66% increase from the previous year. Despite this, Tesla’s share in this growing segment is still very small. Homegrown rivals are beating them to the punch by offering richer price-value benefits to Indian consumers.
Tesla’s current business model imports vehicles from China as Completely Built-Up (CBU) units. While this strategy has been effective thus far, it poses worrying questions regarding the company’s long-term fate in India. Many industry experts suggest that without localized production, Tesla may struggle to compete effectively against domestic brands that offer more affordable options.
Sharma mentioned that he would like to wait for a broader array of models before making a purchase decision. The sentiment among early adopters is clear: many are taking a more cautious approach as they reassess their priorities in light of recent developments within the brand.
“After all these years I have waited, I’m in no hurry to buy it now and become the first one to have it.” – Kawaljit Singh Bedi