Tesla (NASDAQ: TSLA) has begun refunding reservation deposits for early Model 3 bookings in India, pointing to fresh expansion plans for the electric vehicle maker, according to a Bloomberg report.
The refunds apply to customers who placed their Model 3 orders all the way back in 2016. In a series of emails sent out to early reservation holders, Tesla announced it would return the original booking amounts and promised to reconnect once it finalizes new offerings for the Indian market.
A Renewed Push Into India
The move coincides with CEO Elon Musk’s recently announced plans to visit India later this year. Musk’s trip aligns with ongoing trade discussions between India and the United States, which could result in lower tariffs on imported vehicles — a critical factor that could make Tesla models significantly more affordable for Indian consumers.
India, now the world’s third-largest auto market, represents a massive growth opportunity for premium electric vehicle brands. Tesla’s entry, however, could ramp up pressure on domestic automakers, who are only beginning to scale their EV offerings.
Looking for Growth in New Markets
Tesla’s renewed interest in India comes after a tough 2024, during which the company experienced a year-over-year decline in global vehicle deliveries — the first drop in over a decade. Increased competition from Chinese companies like BYD Co. has squeezed Tesla’s market share, prompting the need to diversify into new regions.
According to Bloomberg, Tesla’s broader strategy now includes targeting emerging markets where the EV segment is still growing, providing the company with opportunities to regain momentum as growth in traditional markets slows.
As Musk prepares for his India visit, Tesla’s plans could soon reshape the country’s electric vehicle landscape — and perhaps give the company a fresh boost in 2025 and beyond.
