On May 8th, when Elon Musk recently canceled his planned trip to India, many Indians who had paid $1000 to reserve a Tesla felt their dreams shattered, despite some die-hard fans still holding onto hope.
When Tesla first started accepting electric car reservations in India, Vishal Gondal, the founder of healthcare tech company GoQii, was quick to act and became one of the first reservation holders.
In April 2016, shortly after Tesla opened reservations in India, Gondal, a fervent fan of Musk and Tesla, swiftly paid $1000 to reserve a Tesla Model 3. At that time, he was unaware of the final price of the car in India or when Tesla would start deliveries in the country. However, based on his excitement from driving a Tesla in the US before, he was carried away by the thrill of this purchase.
Over the next nearly seven years, Gondal patiently waited for his Model 3. By 2023, with still no sight of the car, he decided to cancel his reservation, marking the beginning of another ordeal.
Gondal had to email Tesla India executives for six consecutive months before finally receiving a refund in June 2023. "No communication, no emails. Even years later, the company did not offer any apologies," Gondal complained.
So far, Tesla has yet to start selling cars in India, the world's third-largest car market.
Among the Indian users who reserved the Model 3 in 2016, many had experiences similar to Gondal's. Some felt unlikely to purchase a Tesla anymore due to other electric car options in the market, while others decided to wait until Tesla established showrooms and improved after-sales services in India before reconsidering their purchase. In India, only a few die-hard Musk fans are still patiently waiting for the "best electric car" to be delivered.
"If I say I would do it again, that would be foolish," Amit Bhawani, a YouTube user and founder of tech blog PhoneRadar, who also reserved a Model 3 in 2016, commented. "If I see a showroom with a proper service center in Hyderabad (India's fourth-largest city), then maybe I would consider. But I no longer trust Musk."
Bhawani's reservation amount was refunded in February 2020 after he posted a video on YouTube canceling his Tesla order, which garnered public attention. He also detailed his difficult experience in requesting a refund on social media. "Someone directly skipped the entire queue just to shut me up," he said. "I noticed that regular people canceling orders did not receive refunds, only influencers or those with a blue tick at that time got refunds."
Tesla's move to open reservations for the Model 3 in India in 2016 was warmly welcomed. Within hours, many prominent Indian tech and business leaders reserved Teslas and shared updates on social media. Since then, Musk has set multiple timelines for Tesla's entry into the Indian market: summer 2017, sometime in 2019, and "as soon as possible" by mid-2023. Tesla also registered an Indian subsidiary in Bangalore in January 2021, but official channels for purchasing Tesla cars in India are still unavailable.
Earlier this year, when Musk announced plans to visit India, many expected Tesla to finally start discussions on manufacturing electric cars in India. However, just two days before the scheduled trip, Musk canceled the visit citing "significant Tesla responsibilities," but visited China a week later.
Yugal Joshi, a partner at global research firm Everest Group, commented in an interview, "Those who could reserve eight years ago wouldn't be bothered by just $1000." However, he mentioned that delays in investments like building a Gigafactory and manufacturing cars in India, coupled with Musk canceling his recent India visit and his close ties with China, have made the situation more complex. "It's hard to predict when Tesla cars will hit the roads in India unless tariff issues are clarified."
Until a few years ago, potential buyers could see a cancel reservation button when logging into the Tesla website. However, according to Nikhil Chaudhary, co-founder of Tesla Club India, this option was later removed and replaced with an email address.
Tesla India Fan Club has over 18,600 followers on X and hundreds of members in WhatsApp groups, often receiving inquiries on how to cancel reservations. Chaudhary mentioned that some potential buyers even resorted to searching for Tesla employees on LinkedIn to expedite the cancellation process.
Varun Krishnan, founder of tech blog FoneArena, claimed to be the first person to reserve a Model 3 in India. After months of communication with Tesla employees in Hong Kong and California, he finally received a $1000 refund in January 2022.
Due to inflation over the years, Tesla's refund should have been $1300 in 2024. However, the company still only refunded $1000. Goder is currently driving an Audi e-tron and jokingly wonders how much $1,000 invested in Tesla stock back when it was $16 per share in April 2016 would be worth now, with the current trading price around $160.
For years, Tesla has faced a major obstacle in the Indian market due to high import tariffs, nearly doubling car prices. On March 15 this year, the Indian government introduced a new policy offering a 15% lower tariff if car manufacturers establish production bases in India within three years. The conditions include importing fewer than 8,000 cars annually, priced at or above $35,000.
Reports suggest Tesla is scouting locations in India for a $3 billion factory, but Tesla has not commented on this.
Mahesh Murthy, founder of venture capital fund Seedfund and digital marketing company Pinstorm, mentioned Tesla is seeking more favorable tariff policies as they are working on something significant. Despite the current situation not meeting his expectations, Murthy, who booked two Model 3s in 2016, remains optimistic about Tesla's prospects in India.
Murthy revealed that the Society of Indian Automobile Manufacturers (SIAM), representing domestic carmakers, has been actively lobbying against Tesla's entry into the Indian market. SIAM did not respond to requests for comments.
Ankur Bisen, Senior Partner at consulting firm Technopak, noted the evolving landscape of electric vehicles in India over the past eight years, with various viable options now available beyond Tesla.
Josh from the Everest Group mentioned the Indian fascination with Tesla mirrors global enthusiasm, attributing Tesla's appeal to its minimalist design, technology, and focus on driving experience. He highlighted the perception of owning a Tesla as a statement of coolness and distinction, with affluent individuals willing to pay a premium for it.
Tesla fans believe Tesla's electric vehicles offer longer range compared to most others in the market. Arun Bhat, co-founder of the Tesla India Fan Club, criticized German electric cars like Audi and BMW, suggesting they are essentially modified from internal combustion engine vehicles. Bhat emphasized that luxury goes beyond leather seats, praising Tesla's superior core technology.
Joduri added that Tesla's remote software update feature is highly attractive, noting Tesla's ongoing updates for the 2014 Model S, surpassing typical warranty periods.
