Tesla May Have a Repair for the Elon Musk Downside

Tesla is having a nightmarish yr, and far of the harm could be traced on to its CEO, Elon Musk.

After spending almost $290 million to assist Donald Trump return to the White Home, Musk took on a tailored position within the administration, heading the brand new Division of Authorities Effectivity (DOGE). His push to slash federal businesses and reduce social applications, mixed along with his embrace of controversial theories, sparked international protests outdoors Tesla showrooms. The corporate’s liberal buyer base, as soon as its biggest asset, felt alienated, with many house owners publicly regretting their purchases.

The backlash has been brutal. Within the first quarter, Tesla’s international gross sales fell 13%, and its web revenue plummeted a staggering 71% to $409 million in comparison with the earlier yr. The corporate’s inventory is down over 20% since January. With early knowledge suggesting the slide isn’t stopping, the reputational harm seems to be deep and lasting, even after Musk’s spectacular falling out with the president and departure from the administration.

However Tesla might have an escape plan. In response to a brand new report from Bloomberg, the automaker is popping its sights to India.

The corporate is making ready to open its first showroom in Mumbai by mid-July, with one other deliberate for New Delhi shortly after. A primary cargo of Chinese language-made automobiles, primarily the best-selling Mannequin Y SUV, has already been despatched to the nation. This transfer isn’t nearly enlargement; it’s a strategic pivot towards the third-largest auto market on the earth, a market that might doubtlessly offset cratering demand in Europe and stiffening competitors from Chinese language rival BYD.

For years, Tesla’s makes an attempt to enter India have failed, snagged by disagreements over native manufacturing necessities and pricing. The breakthrough seems to have are available in February, after Musk met with Indian Prime Minister Narendra Modi throughout his state go to to Washington. The 2 leaders spoke once more by telephone in April.

“Spoke to @elonmusk and talked about varied points,” Modi posted on X. “We mentioned the immense potential for collaboration within the areas of know-how and innovation.”

Spoke to @elonmusk and talked about varied points, together with the subjects we coated throughout our assembly in Washington DC earlier this yr. We mentioned the immense potential for collaboration within the areas of know-how and innovation. India stays dedicated to advancing our…

— Narendra Modi (@narendramodi) April 18, 2025

Musk responded enthusiastically, saying, “I’m wanting ahead to visiting India later this yr!”

It was an honor to talk with PM Modi.

I’m wanting ahead to visiting India later this yr! https://t.co/TYUp6w5Gys

— Elon Musk (@elonmusk) April 19, 2025

For an organization desperately needing to vary the narrative, this pivot to an enormous, untapped market could possibly be the lifeline it wants. The query is whether or not a brand new chapter in India could be sufficient to repair the harm performed at house.

Tesla didn’t instantly reply to Gizmodo’s request for remark.