Entrepreneur Warns Elon Musk: Choosing China Over India

Indian-American academic, entrepreneur, and author Vivek Wadhwa, took to social media to caution Tesla CEO Elon Musk against opting for China over India for manufacturing endeavors.

Wadhwa asserted that moving manufacturing operations to India would have positioned Musk to dominate the market, whereas choosing China could potentially result in significant losses.

Wadhwa’s remarks surfaced following Elon Musk’s abrupt cancellation of his scheduled trip to India, where he was anticipated to meet Prime Minister Narendra Modi and unveil a $3 billion investment plan. Instead, Musk made an unexpected visit to China shortly thereafter.

“Elon is going to be the biggest loser here. A few years ago, I exchanged emails with him about the risks in China.

I warned him they would rob him blind and urged him to consider moving manufacturing to India instead, where he would have dominated the market by now,” said Wadhwa in the post.

He quoted a post by the Director of Centre for Russia Europe Asia Studies, Theresa Fallon, who said that US and European automakers are failing in China because they were looking only for short-term gain and transferring technology, management techniques, and know-how to China. “It was good while it lasted but that era is over,” said Fallon. 

In light of Musk’s diversion to China, Wadhwa underscored the burgeoning prowess of the Chinese automotive industry. Chinese firms, once novice players in the automotive sector, have now rivaled and even surpassed foreign counterparts like General Motors.

Companies such as BYD, Geely, and Great Wall have expanded their global footprint, while tech giants like Xiaomi, Huawei, Baidu, Tencent, and Alibaba are venturing into the automotive realm.

The report highlighted the swift evolution of the Chinese automotive landscape, where new models are developed expeditiously and at lower costs, captivating both domestic and international markets.

Foreign automakers, previously instrumental in nurturing the Chinese automotive sector, are now facing displacement as indigenous brands gain traction among consumers.

Despite citing “very heavy Tesla obligations” as grounds for his absence in India, Musk’s impromptu visit to China garnered attention and raised eyebrows.

During his visit, Musk engaged in discussions with Premier Li Qiang, focusing on the rollout of Tesla’s Full Self-Driving (FSD) software and data-transfer permissions.

Musk’s visit to China bore fruit as Tesla garnered endorsements from top Chinese auto associations and secured agreements with industry counterparts like Baidu.

These developments pave the way for Tesla’s enhanced market penetration in China, a feat compounded by the imminent rollout of FSD software to Chinese customers.

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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