Tesla’s saga in India started with so much hope and fanfare. It’s recently become a disappointing truth for many diehard fans. Once celebrated as a symbol of electric vehicle innovation, the company’s transformation has paralleled that of its CEO, Elon Musk, who has increasingly become a polarizing figure in U.S. politics. Today, that transformation has completely turned Tesla’s reputation around. The latter has led to considerable damage in terms of the company’s stock market performance and in some of their most important international markets.
Tesla has sold a mere 2.5% of the total India EV market in 2024. This meager share underscores the immense challenge the company still has in recruiting Indian consumers. The company recently opened a 6,000-square-foot showroom at Maker Maxity Mall in Mumbai, strategically located near Apple’s first store in the country. Though the brand is already physically present, early proponents are not excited. All of them are disappointed or at least deeply frustrated by their delayed debut to their market.
Even that excitement from Musk over the prospect of launching Tesla in India has gone sour. By 2023, he had to debt-collect the company into providing a statement refund—which simply stoked the ire of would-be buyers. Despite a reported 66% year-over-year increase in sales of premium electric vehicles during the first five months of 2025, Tesla’s premium segment remains largely niche in the Indian market.
Disappointment Among Early Supporters
Many of Tesla’s earliest Indian supporters are expressing their discontent regarding the company’s failure to deliver on its promises. Arun Bhatt, founder of Tesla Club India, had made a pre-booking of a Model 3 back in 2016. He was conspicuously missing in action for the opening of the showroom. His frustration is shared by many other reservation holders who have been seen and heard nothing—or worse, been completely disregarded and disrespected—during the tortuous wait.
“You paid something and you ardently waited for 10 years, and then out of the blue, they just tell you, we’ll cancel it and we’ll refund, then what happens — 10 years having waited for something, will we be given preferential treatment?” – Arun Bhatt
Bhatt’s emphasis on that takeaway reflected a growing frustration among reservation holders. Eight of ten of them expressed disappointment with Tesla’s failure to communicate and engage at every step along the way. Thousands had hope for more direct support or at the very least recognition for their pioneering early support.
Even among early supporters, one of whom is Kawaljit Singh Bedi, he’s understandably tired after almost a decade of waiting. He isn’t interested in being an ahead-of-the-curve first mover with Tesla.
“After all these years I have waited, I’m in no hurry to buy it now and become the first one to have it, because what’s the point? I waited nine years? I can wait nine years and six months more,” – Kawaljit Singh Bedi
His sentiments resonate with an increasingly common sentiment among early backers that their faith has not been sufficiently returned.
Mixed Responses to Launch Event
Tesla’s inauguration visit to Mumbai was met with enthusiasm, but was accompanied by questions from prospective consumers as well as investors. While many were included in the grand opening, many more felt excluded. Kunal Khattar, an EV-focused investor in India, was one of the invitees who joined on the day. Many of the other early supporters, including Bhatt and Vishal Gondal, did not have the same experience.
Gondal had ordered his ride months ago before Tesla had ever promised anyone a vehicle. His concerns about how the company had handled its communication strategy resonated with many.
“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
He noted the stark contrast between Tesla’s launch buzz and that generated by Apple’s showroom opening nearby. This difference illustrates the effect that brand messaging and interaction can have on consumer perception and expectations.
Vijay Shekhar Sharma, another industry veteran, called this electric vehicle revolution in India a sea change.
“There are so many other options with price-value math more suited for India,” – Vijay Shekhar Sharma
This criticism points to a growing distrust among consumers. They are deeply concerned that there are better value, more attractive electric vehicle options out there that Tesla.
Challenges Ahead for Tesla
Despite this high-profile launch and its growing visibility in India, Tesla’s challenges make for a daunting road ahead. As of now, the company is importing its vehicles from China as Completely Built-Up (CBU) units. So far, it has ruled out building local manufacturing plants. This decision has met with widespread condemnation from consumer advocates who hoped for more robust localized production initiatives.
The base MSRP for Tesla’s Model Y in the U.S. reached $44,990. This pricing makes Tesla’s competitive strategies in the Indian market questionable, as affordability will be imperative for future Indian Tesla consumers. That’s because competition is intensifying in India’s rapidly growing electric vehicle market. To establish any kind of long-term advantage, Tesla will have to get through these hurdles.
Even the most ardent loyalists in the beginning viewed Tesla as a disruptive revolutionary. Today, they are rethinking their loyalty as they scan the field for fresh opportunities in an increasingly competitive landscape.
“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
The absence of a robust Supercharger network in India leaves prospective buyers worried. They doubt whether a Tesla model in particular is practical for someone to own given the current state of the marketplace.
“There is no real excitement to own the first car, knowing that there is no Supercharger network also,” – Kawaljit Singh Bedi
This highlights an important opportunity for Tesla to improve. They will have to make sure that their vehicles are not only desirable but useful for Indian consumers.
