Elon Musk's India visit is pending. Could Donald Trump's victory boost Tesla's entry into India?

Following the appointment of Donald Trump as the new President of the United States of America, shares of Elon Musk's companies began to rise, which, according to an AFP report, was due to the tech billionaire's close association with the Republican candidate's presidential campaign.

Trump generously praised Musk as a “genius” in his victory speech and declared: “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.

Investors' expectations are high

To the delight of investors, Tesla shares rose over 15 percent to $289.44 in after-hours trading before the opening bell on Wall Street.

“Tesla shares are rising… due to his special relationship with Donald Trump,” Andrea Tueni, an analyst at Saxobank, told AFP, adding: “Trump owes him a lot and investors are betting that their closeness will turn into something positive will develop for Tesla.” “.

Musk's role in the Trump office

According to a Bloomberg report, Musk has previously claimed on the subject that he could cut around $2 trillion from the U.S. government's federal budget.

Notably, Trump has stated that if re-elected, he would assign Musk the so-called “Department of Government Efficiency,” which would look for ways to cut government spending, Bloomberg reported. Interestingly, it is abbreviated “DOGE” in reference to the cryptocurrency that Musk has often touted on social media.

Bloomberg said that according to federal results, Musk spent at least $132 million to elect Trump and other Republicans in 2024, moving himself into the party's “upper echelons.”

What about Musk's India visit?

It remains to be seen whether Musk's abandoned attempts to penetrate India's electric vehicle (EV) market could also get a boost from Trump's victory.

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

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

It's worth noting that Musk wanted to make some big announcements about the $2-3 billion electric vehicle factory in India and some developments related to Starlink. He was also expected to meet executives of several space startups in Delhi.

However, with profit margins shrinking, Tesla is trying to use its existing factories to build new and more affordable vehicles, which could lead to further delays in investments in new factories in Mexico and India.

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

(With contributions from agencies)