India was ready to welcome Tesla CEO Elon Musk with open arms last month, but he abruptly cancelled his visit, leaving many disappointed. Just a week later, Musk surprised everyone by heading to China to sign a major deal with tech giant Baidu. This decision left many wondering why he chose China over India, including India-American academic, entrepreneur, and author Vivek Wadhwa.
Elon Musk’s Missed Opportunity in India:
Vivek Wadhwa, in a social media post, revealed that he had urged Elon Musk to consider moving his manufacturing unit to India. Wadhwa believed that had Musk chosen India, he would have dominated the market by now. He even cautioned Musk against picking China, stating that it would ultimately be a costly decision for him. Following Musk’s sudden cancellation of plans to visit India and unveil a $3 billion investment, Wadhwa’s warnings seemed more prescient than ever.
Vivek Wadhwa’s Advice
India-American academic, entrepreneur, and author Vivek Wadhwa took to social media and revealed that he had asked Elon Musk to consider moving his manufacturing unit to India. Had he done so, he would have ruled the market by now. Wadhwa even advised him to not pick China as it would ‘rob him blind’.
Following Elon Musk’s sudden cancellation of his planned visit to India, where he was scheduled to meet Prime Minister Narendra Modi and unveil a $3 billion investment, Wadhwa’s post on X emerged. Musk subsequently made an appearance in China just days later.
Wadhwa’s Warning
“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 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.
Elon Musk’s China Visit
Musk met Premier Li Qiang to discuss the rollout of Tesla’s Full Self-Driving (FSD) software and the data-transfer permissions. Tesla received a significant endorsement from a prominent Chinese auto association, affirming that Tesla’s Model 3 and Y vehicles adhere to data-security regulations. This development potentially opens doors for Tesla to access regions in China that were previously off-limits.
Additionally, Tesla forged an agreement with Baidu, securing access to its mapping license for data gathering on Chinese public roads. Following these advancements, Elon Musk took to X to announce the imminent availability of Tesla’s Full Self-Driving (FSD) technology to customers in China. Concurrently, Chinese competitors like XPeng and Huawei Technologies are also gearing up to introduce their own self-driving software solutions.
Competition in the Self-Driving Market:
While Musk is making strides in China, Chinese competitors like XPeng and Huawei Technologies are also gearing up to introduce their own self-driving solutions. This competitive landscape underscores the importance of Musk’s decision to enter the Chinese market and secure key partnerships.
Conclusion:
Elon Musk’s choice to prioritize China over India may have disappointed many in India, but it appears to be a strategic move for Tesla’s future growth. While Vivek Wadhwa’s warnings about China’s risks should not be taken lightly, Musk’s successful partnerships in China demonstrate the potential benefits of his decision. Only time will tell if Musk’s gamble in China will pay off in the long run.
