Elon Musk's Postponed Visit to India
Elon Musk postponed his planned visit to India on April 20, 2024, citing "very heavy Tesla obligations." This announcement blindsided Indian officials, including Prime Minister. A year later, Musk is again considering a trip to India. Recently, Modi communicated with Tesla’s leadership, discussing tech and innovation collaboration.
Tesla's Global Moves
Following the cancellation of his India trip, Musk visited Beijing to collaborate with Baidu for Tesla’s self-driving technology in China, Tesla’s largest market outside the US. Meanwhile, India has been cautiously open to partnering with Musk's Starlink for distribution deals.
BYD as a Strategic Alternative
- BYD's Market Position: Shenzhen-based BYD, backed by Warren Buffett, has shown significant growth. Despite Buffett reducing his holdings, his initial investment yielded a 2,000% increase.
- Strategic Collaboration: India should consider strategic engagement with China, focusing on commercial interests rather than conflicts. Recently, Saudi Arabia announced a partnership between Aramco and BYD for EV technology, highlighting BYD’s growing influence.
Addressing Trade Deficit with China
- FDI Opportunities: Encouraging Chinese FDI in India, particularly in EV manufacturing with BYD, could mitigate the $100 billion trade deficit.
- Technological Advancements: BYD's flash charging technology could revolutionize EV adoption in India, akin to petrol refueling times.
Comparison: Tesla vs. BYD
- BYD's Growth and Revenue: BYD outperformed Tesla in FY24, reaching over $100 billion in revenue, surpassing major Indian companies like Reliance Industries and LIC.
- Tesla's Challenges: Tesla faces challenges with its outdated model line-up and postponed affordable EV plans, while BYD offers a diverse range of models catering to different price segments, crucial for India’s market.
Strategic Interests and Future Prospects
As India's Minister Piyush Goyal emphasized, India must weigh its strategic interests carefully, considering whether to align solely with volatile allies or diversify its partnerships for better strategic gains.
