Tesla Issues Refunds for Early India Reservations, Signaling Arrival

Tesla Inc.'s India office is refunding early buyers of the Model 3 bookings refund, according to emails obtained through Bloomberg News, sparking speculation that the American electric automobile maker is preparing to launch in the world's largest third auto market.

"We would like to return your reservation fee for the time being," read the messages sent to those who booked these reservations back in the year 2016. "When we have finalized our services in India we will be reaching to the market once more. We look forward to seeing you back when we're all set to launch and provide services to your country."

The Elon Musk-led automaker has begun refunding bookings from years ago because the previous version that was the Model 3 is being discontinued.

The emails, which were sent out from Tesla refund India domains are the latest indication that the auto maker plans to begin retail sales within the South Asian nation after a several years of delaying the country's high import duty.

Just a few days back, Musk said in a blog post via X that he'll travel to India at the end of this year in a period when India is in negotiations for to sign a trade agreement with the US that could involve lower tariffs for automobiles.

A more favorable tariff structure could alter Tesla's long-term strategies. Its vehicle deliveries worldwide fell in 2017 at the beginning of over 10 years, while BYD Co. continues to present a major task.

Elon Musk India visit on the streets would be a hit with its wealthy middle-class population However, it could harm automobile makers in the US which employ a large number of workers in their manufacturing facilities.

A favorable tariff structure could alter Tesla's long-term plans for the future. The company's global vehicle deliveries dropped in the last year for the first time in over 10 years, and BYD competition Tesla continues to be the difficult challenge.