Widely circulated claims and reports suggesting that the Elon Musk-led Tesla had suddenly scrapped its plans to build an EV manufacturing facility in India went viral on May 19.
In addition to certain international news outlets spreading the unverified assertions, social media also lit up with a seemingly endless chain of posts suggesting that the Indian Ministry of Heavy Industries had backed the reports. However, sources within the Ministry have since dismissed these claims as baseless, responding to Financial Express.
How did the inaccurate viral Tesla India plant story go viral?
Citing “Indian local media reports,” numerous international websites, including Eletric-Vehicles.com and Futunn.com, stated that Tesla had “formally” or “officially” decided to abandon its previously announced plans to build a manufacturing facility in India.
Despite the lack of any latest verification backing these claims, reports insisted that the “confirmation” regarding Tesla snubbing India had come from the country’s Minister of Heavy Industries, HD Kumaraswamy, himself.
A widely viewed social media post shared by ‘Teslarati’ on X even went on to incorrectly call KN Balagopal, Minister for Finance of Kerala, the Minister of Heavy Industries, while spreading misinformation.
Tesla’s Indian EV plant viral reports debunked
However, sources within the Ministry have since debunked these false reports, telling Financial Express Online that the Minister of Heavy Industries hasn’t made any such statement regarding Tesla abandoning its plans to build a manufacturing facility in India. They further stated that foreign media outlets are using the minister’s statement from last year to target Tesla.
What did the Indian minister really say about EV manufacturing?
Although it still remains to be seen what happens to Tesla’s much-stalled plans of setting up a facility in India, it is true that the Indian union minister did make these remarks. However, they weren’t made recently.
As established in the response shared with FE.com, HD Kumaraswamy talked about Tesla not wanting to produce cars in India last year when US President Donald Trump’s tariffs regime consumed 2025’s headlines surrounding trade, imports, and exports.
“Mercedes-Benz, Skoda-Volkswagen, Hyundai and Kia have shown interest [in manufacturing electric cars in India]. Tesla, we are not actually expecting [interest] from them. They have only [shown interest] to start two showrooms,” Kumaraswamy said at the time. As of now, Tesla has launched four stores in India: Gurugram, New Delhi, Mumbai, and Bengaluru.
As Musk has repeatedly asserted that India’s tariffs on imported vehicles are too high, Kumaraswamy also noted that India will significantly lower taxes for foreign automakers in a bid to invest in domestic EV production lines. Consequently, the Indian minister announced that companies could import a limited number of electric cars at a lowered duty of 15% (down from the previous 70%) if they invest around $500 million to build EVs and establish manufacturing facilities in India.
Tesla founder and CEO Elon Musk was even slated to visit Indian Prime Minister Narendra Modi in the South Asian country in 2024 and announced a $3 billion investment in a car plant, according to Reuters. However, the visit was ultimately pushed back over “very heavy Tesla obligations.”
Musk’s EV giant’s interest in manufacturing in India is currently on hold. The plans were originally deferred following US President Donald Trump saying in February 2025 that it would be “unfair” for the United States if Tesla built a factory in India. In 2022, the Indian government insisted that Tesla make cars locally. Consequently, Musk’s company said it would export to India to test demand in the country first.