Elon Musk's Ambitions May Come with Unwelcome Consequences for India
India may be getting more than it bargained for when it comes to Elon Musk's entry into the country, as his role in the White House gives him leverage over negotiations on tariffs and factory jobs. The electric vehicle maker has identified locations for two stores in India and is hiring for customer-facing roles, fueling speculation that a meeting between Modi and Musk may pave the way for Tesla to sell cars in the country. However, President Trump's aim of cutting the U.S. trade deficit may leave India less leverage to wrangle coveted factory jobs from Musk.
- The situation highlights the risks of foreign investment in emerging markets, where local governments may struggle to balance economic benefits with concerns over job creation and industrial policy.
- What are the implications for India's economic development if Tesla is only allowed to establish showrooms in the country rather than manufacturing facilities?