Tesla has officially confirmed it will not build a manufacturing facility in India, ending nearly a decade of negotiations, false starts, and broken promises with the Indian government.
India’s Minister of Heavy Industries H.D. Kumaraswamy confirmed the decision on May 19, putting a definitive end to one of the longest-running will-they-won’t-they sagas in the global EV industry.
We have been tracking Tesla’s India ambitions for years — from scouting factory locations in 2024 to hiring staff in early 2025 — and each time, it ended the same way. Last June, we reported that Tesla’s India plans wouldn’t include manufacturing, and the official confirmation now validates that reporting.
The tariff standoff that killed the deal
The fundamental problem was always the same: Tesla wanted lower import tariffs before committing capital to a factory, and India wanted a factory commitment before lowering tariffs. Neither side moved.
