A rare split opened between Musk and Trump over Tesla's plan to build its presence in India

Elon Musk at a White House press briefing with Donald Trump in February 2025.

Andrew Harnik/Getty Images

• President Donald Trump said it'd be "unfair" if Tesla were to open a factory in India.
• Tesla is looking to build a presence in India, posting job ads for sh...

  Tesla's India Expansion Plans: A Rare Disagreement with Trump

  Protectionist Tariffs Obstacle India's Electric Vehicle Market

  Tesla has been pursuing opportunities to establish a presence in India, the world's fourth-largest economy. However, India's protectionist policies, including high import tariffs on electric vehicles (EVs), have been a significant hurdle.

  Tesla's Interest and India's Invitation

  Despite the challenges posed by tariffs, Tesla has continued to express interest in India. In 2024, India announced its intention to reduce EV tariffs for companies investing in manufacturing within the country. This move fueled speculation that Tesla might consider building a production facility there.
  Tesla's recent job postings for showroom positions in New Delhi and Mumbai indicate the company's commitment to expanding its presence in India. Musk had initially planned to announce a major investment during a visit to India in April 2024, but postponed the trip due to Tesla's staff layoffs.
  Tesla's India ambitions have sparked a rare point of difference between Musk and President Donald Trump. Trump has advocated for a strict tariff regime to protect domestic manufacturing. He expressed concern that Tesla building a factory in India would be "unfair" to the United States.
  Musk's proximity to Trump and alleged involvement in key administration decisions have raised questions about potential conflicts of interest. As one of Trump's closest political advisors, Musk heads the Department of Government Efficiency, a newly formed agency tasked with reducing federal spending.
  Trump has stated that he is personally monitoring potential conflicts of interest issues involving Musk's dual role. He has emphasized that Musk will not be involved in situations where a conflict might arise.

  Tesla declined to comment on the matter when contacted by Business Insider.