Tesla's long-awaited arrival in India kicked off with a whimper rather than a bang, suggesting that the automaker's global outlook may not be so rosy.
What's happening?
According to Bloomberg, Tesla opened its Mumbai showroom in July with limited fanfare after nearly a decade of delayed promises to break into the Indian market.
About a month-and-a-half later, the electric vehicle maker has received an underwhelming number of orders — just over 600 in total.
This is just the latest setback for a company that has failed to live up to its usual standard in 2025. Tesla reported a 13% year-over-year dip in sales in Q1, and that downward trend continued into the second quarter with a 13.5% decline.
Why is this lack of Tesla enthusiasm concerning?
As a tastemaker in the EV sector, Tesla has typically been able to leverage its name to help drive growth — and that has benefited not only consumers, but also the planet.
Tesla's success kick-started an era of EV innovation, and as other automakers introduced their EVs to the market, the price point of EVs came down, making the zero-tailpipe-emissions vehicles more accessible to a greater number of buyers.
This hasn't just led to better air quality in vehicle-dependent cities where EV adoption is robust. It has also reduced the cost of car ownership, as EVs don't rely on expensive gasoline and need less maintenance without the need for regular oil changes.
However, Tesla's reputation had already taken a hit in India after some consumers who prebooked their EVs in 2016 got tired of waiting and recouped their reservation fees.
Bloomberg pointed to CEO Elon Musk's polarizing politics, his public fallout with President Trump, high import tariffs, and strained relations between the U.S. and India as other factors contributing to a rocky international rollout during the second half of the year.
Tesla's entry-level model sells for roughly 3.8 million rupees ($43,090) more than the average EV in a price-sensitive market, per JATO Dynamics data shared by Bloomberg.
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While Tesla has struggled to gain momentum in India as anticipated, Bloomberg acknowledged that its total order number of 600 was "respectable" given the niche market dominated by two-wheelers, even if Tesla initially intended to use its 2,500-car annual quota this year.
Last year, almost 60% of EVs sold were two-wheelers, "reflecting the increasing preference for e-scooters and e-bikes among urban commuters seeking cost-effective, eco-friendly alternatives," according to JMK Research & Analytics.
Other automakers — including rising star BYD, which offers models at a lower price point than Tesla despite tariffs — have also made headway in India as the EV market continues to grow.
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