Tesla India country head Prashanth Menon quit his position shortly before the US electric vehicle juggernaut is all poised to establish its operations in India, according to Bloomberg News on Thursday. Menon had also resigned from being the chair of Tesla India’s board and has been a nine-year company servant.
As per Bloomberg, Tesla’s China-based staff will now manage Indian operations in the meantime. No replacement for Menon has been announced immediately.
Tesla Prepares for India Launch
Earlier this year in March, Tesla agreed to lease its first Mumbai showroom, rekindling its long-postponed India entry strategy, as per Reuters. Nevertheless, the EV company is still awaiting clarity on lowering import duties before committing to full manufacturing in India. According to CNBC-TV18, Tesla wants to enter the Indian market with lower import tariffs, even while keeping local production plans pending.
Musk Waits for Policy Clarity
CEO Elon Musk is waiting for complete clarity on India’s EV import duty policy before making a full-fledged launch, a Mint report states. Tesla has been repeatedly advocating for reduced import tariffs to position its vehicles more competitively in India.
Tesla’s Q1 Earnings Take a Hit
During the first quarter of 2025, Tesla’s net income dropped by 71% year-over-year to $409 million due to declining demand and geopolitical tensions globally. The result missed market consensus. Revenue was also down by 9% to $19.34 billion, less than the $21.11 billion estimate put together by LSEG.
Tesla’s January–March operating income came in at $399 million. Tesla has also withdrawn its previous 2025 financial guidance because of increasing uncertainty over trade policy and demand in the market.
Margins and Earnings Under Pressure
Adjusted earnings per share of 27 cents by Tesla fell short of analysts’ estimates on average. Automotive gross margin, excluding regulatory credits, dropped to 12.5%, compared to 13.6% in the previous quarter, as computed by Reuters.
So far in 2025, Tesla’s stock has dropped by 27%, trading at $276.22.
Disclaimer: This article is intended solely for educational purposes. The views and recommendations mentioned are those of individual analysts or brokerage firms and do not reflect the opinions of The Daily Guardian. Readers are advised to consult certified financial advisors before making any investment decisions.
