Tesla’s Appeal Wanes Among India’s Devoted Fans Despite Musk’s Recent Success

This week, Tesla opened its first showroom in India, drawing in visitors like Vishal Gondal, an avid supporter who booked a Model 3 in April 2016. However, despite his excitement, Gondal has chosen not to buy a Tesla at this point.

“I felt a little let down,” Gondal, founder and CEO of fitness-tech startup GOQii, said after visiting Tesla’s inaugural showroom at Mumbai’s Bandra-Kurla Complex.

After nearly a decade of anticipation for Tesla’s entry into India, Gondal’s enthusiasm faded when he had to request a refund in 2023 after numerous attempts to recover his $1,000 reservation fee.

“Getting my money back was a hassle,” he told TechCrunch. “As a joke, had we invested that money in Tesla IPO stock, we would have made more.”

Gondal is among the first Tesla supporters in India, having reserved a vehicle long before any promise of its launch. Now, nine years later, many initial advocates are opting not to engage with Tesla’s debut.

These early supporters were left without their Model 3s after paying the reservation fee shortly after Musk announced the car’s launch in India. Some, like Gondal, found it challenging to obtain refunds, with a few receiving their money back just months prior to Tesla’s official unveiling.

“It’s frustrating to see how long Tesla took. While our government and processes are tricky, it’s amusing that even Starlink received approval much quicker,” remarked Varun Krishnan, operator of the tech blog FoneArena and also an early Tesla backer in India.

Tesla did not invite these loyal customers to the showroom opening and failed to provide any updates on the launch.

The new Tesla showroom spans 6,000 square feet and is located in Maker Maxity Mall, near India’s first Apple store. However, Gondal remarked that Tesla’s experience lacked the excitement of Apple’s launch.

“When Apple opened its showroom in the same location, the excitement it generated was vastly different from Tesla’s,” he noted.

Gondal arrived at the Tesla showroom in his Audi e-Tron, which he purchased the previous year after waiting a long time for the Model 3.

“This felt like the most muted launch,” added Amit Bhavani, founder of tech blog Phoneradar, who also pre-reserved a Model 3 in 2016.

Bhavani eventually received his $1,000 refund after publicly critiquing Tesla in a YouTube video uploaded in 2020.

The video drew commentary from many individuals who had also reserved the Model 3 and were waiting for refunds, Bhavani noted.

“That’s when my admiration for Tesla morphed into real frustration,” he shared with TechCrunch.

“The least Tesla could have done is reach out to everyone who reserved a car, saying, ‘We’re hosting a special event for you.’ Those individuals put themselves out there, and even if the amount isn’t huge, it shows they supported Tesla,” Gondal expressed.

Others, like Kawaljit Singh Bedi, feel no regrets about supporting Tesla, even though they received refunds just before this year’s launch. However, they are in no rush to purchase a Tesla anytime soon.

“After so many years of waiting, I’m not eager to be the first to own it. If it took nine years, I can wait another six months,” remarked Singh, co-founder and CTO of Frammer AI.

“Most early backers are disappointed, including notable figures like Vishal and Vijay [Shekhar Sharma of Paytm],” noted Krishnan. “People such as Vishal or Vijay carry significant influence; if they decide to buy something, many will follow suit.”

Sharma, founder and CEO of the Indian fintech giant Paytm, echoed the feelings of other early supporters, stating he would rather wait until there is a wider variety of cars available from Tesla.

“It might be too late now,” he remarked. “There are several alternatives that provide greater value for the Indian market.”

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

“You paid something and waited eagerly for 10 years, and then suddenly they inform you of a cancellation and a refund without any preferential treatment. What are we left with after waiting a decade?” he questioned. “There’s been zero communication on this, so most reservation holders are frustrated.”

Bhatt co-founded the club with fellow Tesla enthusiast and Delhi University student Nikhil Chaudhary in 2019 as an informal group for fans of the EV brand. However, he noted that due to Tesla’s delays, the club has transitioned from promoting Tesla to focusing on EV and clean energy awareness.

Lack of clarity on after-sales and local Supercharger network

A major concern among early Tesla supporters is the uncertainty regarding the establishment of the Supercharger network and after-sales services. The company announced plans to set up eight charging stations evenly across Delhi and Mumbai before deliveries begin in Q3, but it remains unclear if these will adequately serve Tesla drivers. Moreover, no details have been provided on how Tesla plans to handle after-sales service in India.

“As I’ve matured over the past nine years, my perspective on buying vehicles has become more practical. I’m more focused on practical aspects now than merely the Tesla brand I used to admire,” Krishnan stated.

“There’s a lack of real excitement about owning the first model, especially since there’s no Supercharger network established,” Kawaljit from Frammer AI added.

Musk’s political affiliations are alienating some Indian consumers

Recently, Musk’s public persona has shifted from that of an innovative entrepreneur to a contentious political figure in the U.S. This transformation has impacted Tesla’s business and stock performance in both the U.S. and significant international markets, including India.

“After everything that’s occurred politically, I don’t view Elon in the same way as I once did,” Krishnan from FoneArena remarked.

Kunal Khattar, an EV investor and founder of AdvantEdge Founders, shared a similar sentiment, noting that Tesla has lost “a bit of its allure” due to Musk’s political ties and controversies with Trump.

“People once believed Tesla was helping save the planet and addressing climate issues; that sentiment has waned,” he observed.

Khattar attended the Tesla launch in Mumbai and, like Gondal and others, described the event as “underwhelming” and “not indicative of a typical vehicle launch.”

The Luxury Market Fragment

Tesla launched the Model Y in India, priced at ₹59,89,000 (about $68,000). Many find this price steep compared to the U.S., where the Model Y starts at $44,990 (around ₹38,71,000). The car is being imported from China, rather than produced locally, which incurs tariffs that Tesla must navigate until it sets up a domestic factory, leading to higher consumer costs.

In India, the premium car market, which ranges from ₹35,00,000 (approximately $40,700) to ₹1,00,00,000 (around $116,200), accounts for only 1% of total vehicle sales, roughly 50,000 units. However, electric vehicles currently hold nearly a 10% share of this premium segment, according to Puneet Gupta, director at S&P Global Mobility.

“With Tesla’s entry and prospective local manufacturing in India, in a few years, it could compel OEMs like BMW, Mercedes-Benz, and Audi to design India-specific models,” he stated. “The challenge remains in convincing these OEMs to develop products suited for Indian consumers and achieve sufficient volume.”

Overall, electric vehicle sales made up just 2.5% of the total market in 2024, according to Counterpoint, in stark contrast to the negligible sales figures in 2016 when Tesla first announced its entry into the market. This context contributes to the initial excitement surrounding Tesla.

“Today, buyers can access excellent and powerful electric vehicles in India. Thus, Tesla has lost its allure, except for perhaps a momentary curiosity,” Bhawani from PhoneRadar commented.

Tata Motors has recently dominated India’s EV market, while other players, including China’s MG Motor, are beginning to establish a presence with new offerings.

The luxury vehicle segment remains niche, but the growing population of high-net-worth individuals has led to a 66% year-over-year rise in premium electric vehicle sales in the first five months of 2025, according to Abhik Mukherjee, a research analyst focused on automotive and IoT at Counterpoint.

In the premium segment where the Model Y is positioned, brands like BMW, Mercedes-Benz, Land Rover, Volvo, and select Hyundai and Kia models are already well established.

“Given Tesla’s current pricing, it’s doubtful it will disrupt competitors within that price range,” Mukherjee stated.

Nonetheless, Tesla’s arrival is expected to draw attention to electric vehicles in a predominantly two-wheeler market.

“At the very least, consumers will begin considering EVs. Will Tesla sell a significant number of cars? Probably not. But will Tesla boost the sales of other EV brands? I believe so,” Khattar from AdvantEdge Founders concluded.