Tesla ‘Working Through Challenges’ with India’s Government, Says Elon Musk

Tesla plans to establish fully-owned stores in India upon its launch in the world’s second-most populous country, but when that will happen is still in question, according to a statement from the U.S. company’s head.

In a response to being asked when Tesla would launch in India, CEO @Elon Musk said on Wednesday that the U.S. automaker is still having “challenges” with the country’s government.

In the tweet, Musk said, “Still working through a lot of challenges with the government.”

After Tesla lobbied the Indian government for lowered import duties last July, the government followed up in August to deny Tesla’s proposal for reduced import taxes.

Just a few weeks later, the government responded again, saying the automaker would need to provide India with sourcing plans and a business roadmap before being offered lowered taxes for imports.

Still, Tesla is also reportedly in discussions with a number of parts suppliers in India ahead of the launch, following through with a condition requested by the country’s government to utilize local suppliers for production needs.

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Another Musk company, SpaceX, was asked by the Indian government to halt its Starlink efforts in the country immediately in November, before news last week that SpaceX’s Country Head resigned and the company refunded all Starlink pre-order customers in India.