Despite rumors of Teslaâs stock plummeting, Elon Musk continues to expand globally. This time, the first and most spectacular store is located in Mumbai, India.

Tesla Opens First Showroom in Mumbai, Sparking Excitement and Debate Over India Entry
Mumbai, India â In a landmark move that signals a seismic shift in South Asiaâs electric vehicle (EV) landscape, Elon Muskâs Tesla has officially thrown open the doors to its first Indian showroom and experience center in Mumbai, Maharashtra. The long-awaited debut, while greeted with fanfare and optimism, has also ignited debate over policy concessions, local manufacturing promises, and the future of Indiaâs EV ecosystem.
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A Glittering Launch Amid Political and Economic Crosscurrents
Teslaâs Mumbai showroom, nestled in the upscale Bandra-Kurla Complex (BKC), was inaugurated on July 14 in a ceremony attended by top Tesla executives, Maharashtra Chief Minister Eknath Shinde, and representatives from the U.S. Consulate. Notably, Elon Musk himself was absent, instead delivering a virtual address in which he spoke of âfuture ambitions for deeper collaboration with India.â
Insiders reveal that Tesla secured a fast-tracked approval and a 10-year lease for its flagship store under the Maharashtra Industrial Policy 2023, which offers generous incentives for foreign EV manufacturers. Critics, however, question whether this reflects preferential treatment, especially given Teslaâs protracted negotiations with the central government over steep import duties.
Years in the Makingâand the Reasons for Delay
Tesla first registered its Indian subsidiary, Tesla India Motors and Energy Pvt Ltd, in Bengaluru back in January 2021. Since then, Indian customers have waited in suspense as negotiations stalled, primarily over Indiaâs high import taxesâranging from 60% to 100%âand Teslaâs insistence on lower levies before committing to local production.
âTesla wanted India to be flexible, but India wanted Tesla to invest before relaxing policies,â explained automotive analyst Rajesh Thakkar. âThis stalemate delayed the launch by nearly four years.â
Recent back-channel negotiations, reportedly spurred by Teslaâs promise to begin manufacturing in India by 2026, finally broke the impasse.
Whatâs on Offerâand Whatâs Missing
The Mumbai showroom currently features the Model 3 and Model Y, with price tags between âč5.5 million and âč7.5 million ($66,000â$90,000), squarely targeting Indiaâs luxury segment. Test drives are available by appointment only, and deliveries are scheduled to begin in Q4 2025âinitially through imports.
While thereâs no official announcement regarding a Tesla Gigafactory in India, rumors swirl about potential locations in Gujarat or Tamil Nadu. A Tesla executive, speaking anonymously, confirmed that the company is in âadvanced talksâ for land acquisition, with plans to manufacture more affordable EVs for both Indian and global markets.
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Skepticism Among Indian EV Startups
The public reception to Teslaâs arrival has been largely enthusiastic. However, several domestic EV startups have voiced concern.
âThis creates an uneven playing field,â said Tarun Mehta, co-founder of Ather Energy. âTesla is entering with government incentives, while Indian startups had to build from scratch with limited support.â
Industry insiders are also wary of Teslaâs aggressive global pricing strategy and its potential impact on Indiaâs nascent EV ecosystem.
Environmental and Infrastructure Hurdles
While Tesla courts Indiaâs urban elite, infrastructure remains a significant challenge. India currently has fewer than 10,000 public EV charging stations, with Mumbai accounting for just over 200. In response, Tesla has reportedly signed memorandums of understanding with Adani Electricity and Tata Power to build a fast-charging network across Maharashtra and the Delhi NCR region.
Environmental activists, meanwhile, caution that without a broader transition to renewable energy, the proliferation of EVs may simply shift the pollution burden from the roads to the power plants.
What Lies Ahead?
Teslaâs arrival marks a pivotal moment in Indiaâs EV storyâbut the real test lies ahead. Can Tesla navigate Indiaâs complex regulatory maze, meet the demands of price-sensitive consumers, and overcome infrastructural barriers? As the worldâs most valuable carmaker sets its sights on the subcontinent, all eyes are on whether Muskâs vision can truly electrify India.
