‘Biggest loser’: Entrepreneur on Elon Musk picking China over India
Indian-American academic, entrepreneur, and author Vivek Wadhwa recently took to social media to express his views on Elon Musk’s decision not to consider moving Tesla’s manufacturing operations to India.
In his post, Wadhwa said that Musk would be the “biggest loser” due to his choice.
“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.
Wadhwa shared that he had advised Elon Musk to explore manufacturing in India instead of China.
He had cautioned that China would not be a favourable environment and could potentially lead to Tesla being taken advantage of.
This comes after Musk called off his planned trip to India, during which he was expected to meet with Prime Minister Narendra Modi and announce a substantial $3 billion investment.
Instead, Musk made a surprise visit to China shortly thereafter.
Theresa Fallon, Director of the Centre for Russia Europe Asia Studies, had earlier said that US and European automakers were facing challenges in China due to short-term strategies that involved sharing critical technology and knowledge.
This approach, Fallon highlighted, ultimately led to Chinese firms catching up and even surpassing foreign competitors in the automotive industry.
According to a CNBC report cited by Fallon, this shift has seen Chinese companies like BYD, Geely, and Great Wall expanding globally, while foreign ventures such as Jeep’s joint effort in China have encountered financial difficulties.
The report highlighted that foreign companies had initially benefitted from their ventures in China, aiding their local partners in learning essential automotive manufacturing skills.
However, Chinese firms are now producing new models faster and at lower costs, catering effectively to local consumer preferences for Chinese brands.
Elon Musk’s unexpected visit to China yielded positive outcomes, including discussions on Tesla’s Full Self-Driving (FSD) software and collaborations with key players like Baidu for data-sharing and mapping services.
Despite Musk’s explanation of being tied up with Tesla obligations for cancelling his India trip, his subsequent visit to China raised eyebrows.
In China, Musk met with Li Qiang and gained endorsements from influential bodies regarding Tesla’s compliance with data-security regulations, potentially easing entry into restricted Chinese markets.
Musk hinted at the imminent release of Tesla’s FSD software in China, with local competitors like XPeng and Huawei Technologies also advancing their own self-driving technologies.
