Tesla India Launch Falls Flat as Early Backers Exit

Key Points

• Tesla India Launch Falls Flat as Early Backers Exit
• Refund delays and no communication anger the original supporters
• Premium pricing and poor infrastructure hurt launch impact
• Elon Musk’s political image weakens Tesla’s global appeal

Tesla’s long-anticipated India launch was supposed to reward its earliest supporters. Instead, it’s left them feeling sidelined.

Vishal Gondal, CEO of fitness-tech startup GOQii and one of Tesla’s earliest Indian backers, visited the brand’s first showroom in Mumbai this week. But after nearly a decade of waiting, he says he has no intention of buying now.

“I felt underwhelmed,” Gondal shared. He reserved a Model 3 in 2016, hours after bookings opened, but spent years chasing a $1,000 refund, which he only received in 2023. “We could’ve invested that money in Tesla stock and seen better returns,” he joked.

Tesla’s long-awaited India debut has left early loyalists disappointed, citing years of delays, lack of communication, and high prices for imported models. Many early backers, once eager, now feel underwhelmed and are turning to other EV brands. Concerns over after-sales service,… pic.twitter.com/EbL6dzp2l4

— Marius Fanu (@mariusfanu) July 20, 2025

Many early adopters like Gondal are walking away from Tesla, not celebrating it. And it’s not just the refund headaches—they feel ignored. Tesla never reached out to early reservation holders, didn’t invite them to the launch, and gave no special recognition.

Compare that to Apple’s dramatic launch of its Mumbai store in the same upscale Bandra-Kurla Complex. “There’s a world of difference in how Apple and Tesla treated their fans,” Gondal noted.

Varun Krishnan of tech blog FoneArena, another 2016 reviewer, echoed the frustration. “Even Starlink got approved faster than Tesla,” he said.

Amit Bhawani of PhoneRadar had to post a critical YouTube video to get his refund. “That’s when I realized the love turned to hate,” he said. His video attracted dozens of similar complaints from other Tesla reservation holders in India.

Tesla came to India with half the features it gives in the US and that too on 2X the price and to top it off they added this GST and administrative charges which don’t exist for other EVs.

I don’t see Tesla succeeding in India. pic.twitter.com/ucR2eMNMQg

— StarlightTrader (@Starlight_T1) July 15, 2025

High Price, Weak Support, and Fading Brand Trust

The Tesla India launch introduces the Model Y, priced at ₹59.89 lakh (~$68,000), significantly more than its U.S. base price of $44,990. The reason? Tesla is importing vehicles from China, which adds steep import taxes under the Completely Built-Up (CBU) model.

This limits Tesla’s market to India’s premium EV segment, which accounts for just 1% of total car sales—about 50,000 vehicles annually. Electric cars make up roughly 10% of that tiny slice.

Many feel Tesla’s price point isn’t justified by its offering. There’s no clarity on after-sales service. The company says it will build eight Superchargers split between Delhi and Mumbai, but that may not be enough to support customers.

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“I care more about long-term support than a shiny badge now,” Krishnan said. “I’m no longer driven just by the brand.”

That sentiment is growing. Arun Bhatt, co-founder of Tesla Club India, said his group has shifted focus from Tesla to general EV awareness. “There’s been zero communication or appreciation for those of us who waited years,” he said.

Source – X – Techtoken

The problem mirrors how Nvidia is struggling to adapt in tightly regulated markets—Tesla’s lack of localization and customer connection in India is becoming a liability.

And Tesla’s once-iconic image is changing. Elon Musk’s recent political involvement—particularly his alignment with Donald Trump—has alienated global supporters.

“People no longer see Tesla as a climate savior,” said Kunal Khattar, EV investor and founder of AdvantEdge Founders. “Now, it’s just a luxury car with a polarizing CEO.”

Even Khattar, who was invited to the Mumbai launch, called it “underwhelming” and lacking in energy.

Source – Kunal Khattar – Techtoken

India’s EV Scene Has Moved On Without Tesla

Back in 2016, Tesla was a symbol of innovation. Today, it’s just one more player in India’s fast-growing EV space.

Tata Motors dominates the affordable EV market, while global giants like BMW, Volvo, and Mercedes-Benz are winning in the premium segment. And new players, like MG Motor with JSW Group, are also making bold moves.

“Today, people can walk into showrooms and get a beautiful, powerful EV without waiting years,” said Bhawani of PhoneRadar. “Tesla is no longer the only ‘wow’ brand.”

According to Counterpoint Research, India’s overall EV market hit 2.5% of total car sales in 2024. Premium EVs saw a 66% YoY sales jump in the first five months of 2025. But that doesn’t guarantee Tesla’s success.

Tesla’s pricing and positioning may struggle to compete. “Tesla might not sell many cars,” said Khattar. “But it will increase attention toward EVs in general.”

Much like how Grok AI Companions are reshaping how people interact with AI, Tesla once had the power to change consumer expectations. That impact may now benefit its rivals more than Tesla itself.

For Tesla to succeed in India, it must localize, communicate better, and rebuild trust. Otherwise, as Bhawani puts it, “Tesla is just another luxury car—great for a quick look, but not something people are racing to buy.”

If Tesla can’t adjust to the market like Xbox is doing with PC game streaming, it risks being a brand admired from afar, but never truly embraced in India.