Tesla has officially abandoned plans to build a manufacturing facility in India. The country's Minister of Heavy Industries confirmed the decision following a deadlock in negotiations over import tariffs. Local supply chain limitations also prevented the proposed site from meeting Tesla's production requirements.
Tesla shares are facing downward pressure as the company exits the major automotive market. Some analysts attribute the stock decline to the upcoming SpaceX IPO and potential diversion of Elon Musk's capital. Negative investor sentiment also follows a recent price increase for the Model Y in the United States.