Tesla’s Appeal Diminishes Among Indian Fans Despite Musk’s Recent Successes

This week, Tesla unveiled its first showroom in India, drawing in enthusiasts like Vishal Gondal, who reserved a Model 3 as far back as April 2016. Yet, despite early excitement, Gondal has chosen to postpone his Tesla purchase for now.

“I felt a bit let down,” Gondal, the founder and CEO of fitness tech company GOQii, said after his visit to Tesla’s inaugural showroom in Mumbai’s Bandra-Kurla Complex.

After nearly a decade of anticipation for Tesla’s entry into the Indian market, Gondal’s enthusiasm waned as he had to ask for a refund in 2023 following several failed attempts to retrieve his $1,000 reservation fee.

“Getting a refund was quite a hassle,” he told TechCrunch. “Jokingly, if we had invested that money in Tesla’s IPO stock, we would have been better off.”

Gondal is among the first Tesla supporters in India, having reserved his vehicle well before any formal announcements. Now, nearly ten years later, many early fans are choosing not to engage with Tesla’s launch.

These initial backers missed out on their Model 3s after paying the reservation fee shortly after Elon Musk’s announcement regarding the vehicle for India. Some, including Gondal, faced challenges obtaining refunds, with only a few receiving their money back just months before the official launch.

“It’s frustrating how long Tesla took. While our government procedures can be complicated, it’s interesting that Starlink got approval much faster,” commented Varun Krishnan, operator of the tech blog FoneArena and an early supporter of Tesla in India.

Tesla did not extend invitations for the showroom opening to these loyal fans, leaving them uninformed about the launch.

The new Tesla showroom, spanning 6,000 square feet, is located in Maker Maxity Mall, next to India’s first Apple store. Gondal remarked that the excitement surrounding Tesla’s showcase was overshadowed by Apple’s product launches.

“When Apple opened its store at the same site, the excitement was far greater than Tesla’s,” he noted.

Gondal arrived at the Tesla showroom in his Audi e-Tron, purchased last year after a long wait for the Model 3.

“This was the least exciting launch,” said Amit Bhavani, founder of the tech blog Phoneradar, who also reserved a Model 3 in 2016.

Bhavani eventually received his $1,000 refund after publicly criticizing Tesla in a YouTube video he shared in 2020.

His video sparked discussions among others who had also reserved the Model 3 and were waiting for their refunds, Bhavani recalled.

“That was when my admiration for Tesla turned into genuine frustration,” he told TechCrunch.

“The least Tesla could have done is reach out to those who reserved a vehicle, inviting them to a special event. These individuals supported Tesla, and regardless of the amount, it signifies their endorsement,” Gondal remarked.

Other early supporters, such as Kawaljit Singh Bedi, express no regrets about supporting Tesla, even though they received refunds just before this year’s launch. However, they aren’t in a hurry to purchase a Tesla soon.

“After so many years of anticipation, I’m not keen on being the first to own one. If it took nine years, waiting another six months is a small fee,” stated Singh, co-founder and CTO of Frammer AI.

“Most early supporters are frustrated, including notable figures like Vishal and Vijay [Shekhar Sharma of Paytm],” Krishnan observed. “Individuals like Vishal or Vijay have major influence, and their purchasing choices often set trends.”

Sharma, founder and CEO of Indian fintech giant Paytm, expressed similar thoughts, saying he prefers to wait until Tesla offers a broader range of vehicles.

“It might be too late now,” he noted. “There are several competitors that provide better value for the Indian market.”

The prolonged delay in Tesla’s launch and the lack of invitations for the showroom opening have left some of the brand’s original Indian supporters feeling overlooked, shared Arun Bhatt, founder of Tesla Club India and a Model 3 pre-booker since 2016.

“You invested your money and waited eagerly for ten years, only to get news of a cancellation and a refund without any special acknowledgment. What do you have left after such a long wait?” he asked. “There’s been no communication, which has disappointed most reservation holders.”

Bhatt co-founded the club alongside fellow Tesla enthusiast and Delhi University student Nikhil Chaudhary in 2019 as an informal group for EV brand fans. However, he noted that because of Tesla’s delays, the club’s focus has shifted from advocating for Tesla to promoting awareness about EVs and renewable energy.

Uncertainty Regarding After-Sales and Local Supercharger Network

A significant concern among early Tesla supporters is the uncertainty regarding the establishment of the Supercharger network and after-sales support. The company has announced intentions to set up eight charging stations in Delhi and Mumbai before deliveries begin in Q3, but it’s still unclear whether these will sufficiently serve Tesla drivers. Additionally, there have been no updates regarding Tesla’s strategy for after-sales services in India.

“After nine years, my approach to buying cars has become more pragmatic. My interests have shifted away from solely the Tesla brand I once idolized,” Krishnan stated.

“The excitement surrounding owning the first model feels fading, especially since there’s no established Supercharger network,” Kawaljit from Frammer AI added.

Musk’s Political Affiliations Alienate Some Indian Consumers

Recently, Elon Musk’s public image has shifted from that of an innovative entrepreneur to a divisive political figure in the U.S., impacting Tesla’s business and stock performance across both the U.S. and significant global markets, including India.

“After recent political developments, my perspective on Elon has changed quite a bit,” Krishnan from FoneArena commented.

Kunal Khattar, an EV investor and founder of AdvantEdge Founders, shared similar sentiments, stating that Tesla has lost “some of its allure” due to Musk’s political connections and controversies tied to Trump.

“There used to be a perception that Tesla contributed to environmental initiatives and countering climate issues; that feeling has waned,” he pointed out.

Khattar was present at the Tesla launch in Mumbai and described the event, much like Gondal and others, as “uninspiring” and “not representative of a traditional vehicle launch.”

Fragmentation in the Luxury Market

Tesla has introduced the Model Y in India, priced at ₹59,89,000 (approximately $68,000). This price is considered high compared to the U.S., where the Model Y starts at $44,990 (around ₹38,71,000). Currently, the vehicle is imported from China instead of being manufactured locally, leading to tariffs that Tesla must navigate until it establishes domestic production, which in turn drives up consumer prices.

In India, the premium vehicle market, priced between ₹35,00,000 (about $40,700) and ₹1,00,00,000 (around $116,200), comprises only 1% of total vehicle sales, estimated at approximately 50,000 units. However, electric vehicles now account for nearly 10% of this premium segment, according to Puneet Gupta, director at S&P Global Mobility.

“With Tesla’s entry and potential local manufacturing in India, it could prompt OEMs like BMW, Mercedes-Benz, and Audi to develop models specifically designed for India in the coming years,” he noted. “The challenge lies in persuading these OEMs to create products that cater to Indian consumers and achieve sufficient volume.”

Overall, electric vehicle sales made up just 2.5% of the total market in 2024, as reported by Counterpoint, a stark contrast to the minimal sales figures reported in 2016 when Tesla first announced its intent to enter the market. This context contributes to the growing lack of enthusiasm surrounding Tesla.

“Currently, buyers can find impressive and powerful electric vehicles in India. Thus, Tesla has diminished in its allure, perhaps save for occasional curiosity,” remarked Bhavani from PhoneRadar.

Tata Motors has emerged as the leader in India’s EV market, while competitors like MG Motor from China are starting to establish their footholds with new offerings.

The luxury vehicle segment remains specialized, yet the increasing number of high-net-worth individuals has resulted in a 66% year-over-year rise in premium electric vehicle sales during the initial five months of 2025, according to Abhik Mukherjee, a research analyst focusing on automotive and IoT at Counterpoint.

Within the premium segment where the Model Y is positioned, brands such as BMW, Mercedes-Benz, Land Rover, Volvo, and several Hyundai and Kia models are already well-entrenched.

“Given Tesla’s current pricing, it’s debatable whether it can indeed disrupt competitors in that price range,” Mukherjee remarked.

Nonetheless, Tesla’s presence is expected to bolster awareness regarding electric vehicles in a market largely governed by two-wheelers.

“At the very least, consumers might begin to consider EVs. Will Tesla achieve significant sales? Perhaps not. But will Tesla encourage sales for other EV brands? I firmly believe so,” Khattar from AdvantEdge Founders concluded.