Elon Musk’s India visit in limbo, could Donald Trump’s victory boost Tesla’s entry into India?

After Donald Trump was declared the new president of the United States, shares of Elon Musk’s companies began to soar based on the tech billionaire’s close ties to the Republican candidate’s presidential campaign, according to an AFP report.

Trump in his victory speech lavishly praised Musk as a “genius”, stating: “We have a new star, a star is born: Elon. He’s a great guy. He’s a character, he’s a special guy, he’s a super genius ,” Trump said.

Investor expectations high

Much to the delight of investors, Tesla shares jumped more than 15 percent to $289.44 in after-hours deals before the opening bell on Wall Street.

“Tesla shares are rising … because of his special ties to Donald Trump,” Saxobank analyst Andrea Tueni told AFP, adding that “Trump owes him a lot and investors are betting that their closeness will something positive for Tesla”.

Musk’s role in the Trump office

In previous indications on the matter, Musk has claimed that he can cut about $2 trillion from the US government’s federal budget, according to a Bloomberg report.

In particular, Trump has said that if re-elected, he would hand Musk the so-called ‘Department of Government Efficiency’ – which would look at ways to cut government spending, Bloomberg reported. Interestingly, it’s abbreviated to ‘DOGE’ in reference to the cryptocurrency Musk has often touted on social media.

Bloomberg said that according to federal records, Musk has spent at least $132 million to elect Trump and other Republicans in 2024, launching himself into the party’s “top echelon.”

What about Musk’s visit to India?

It remains to be seen whether Musk’s abandoned bid to enter the Indian electric vehicle (EV) market could also get a boost with Trump’s victory.

In May 2024, Tesla’s CEO canceled his visit to India citing “heavy commitments” and said he plans to visit the country later this year. This has not yet happened.

“Unfortunately, very heavy Tesla commitments require the visit to India to be delayed, but I very much look forward to visiting later this year,” Musk wrote on his social media platform X (formerly known as Twitter).

It is worth mentioning that Musk was set to make some big announcements about the $2-3 billion EV factory in India and some developments related to Starlink. He was also expected to meet executives from several space startups in Delhi.

But amid shrinking profit margins, Tesla’s attempts to leverage its existing factories to build new and more affordable vehicles could lead to further delays in investment in new plants in Mexico and India.

It remains to be seen whether Trump will continue his anti-China stance – in his previous term as president he imposed sanctions on the country – and whether this will lead Musk to look for greener pastures elsewhere, i.e. India.

(With input from agencies)