Tesla Might Have a Fix for the Elon Musk Problem

Tesla is having a nightmarish year, and much of the damage can be traced directly to its CEO, Elon Musk.

After spending nearly $290 million to help Donald Trump return to the White House, Musk took on a tailor-made role in the administration, heading the new Department of Government Efficiency (DOGE). His push to slash federal agencies and cut social programs, combined with his embrace of controversial theories, sparked global protests outside Tesla showrooms. The company’s liberal customer base, once its greatest asset, felt alienated, with many owners publicly regretting their purchases.

The backlash has been brutal. In the first quarter, Tesla’s global sales fell 13%, and its net income plummeted a staggering 71% to $409 million compared to the previous year. The company’s stock is down over 20% since January. With early data suggesting the slide isn’t stopping, the reputational damage looks deep and lasting, even after Musk’s spectacular falling out with the president and departure from the administration.

But Tesla may have an escape plan. According to a new report from Bloomberg, the automaker is turning its sights to India.

The company is preparing to open its first showroom in Mumbai by mid-July, with another planned for New Delhi shortly after. A first shipment of Chinese-made vehicles, primarily the best-selling Model Y SUV, has already been sent to the country. This move isn’t just about expansion; it’s a strategic pivot toward the third-largest auto market in the world, a market that could potentially offset cratering demand in Europe and stiffening competition from Chinese rival BYD.

For years, Tesla’s attempts to enter India have failed, snagged by disagreements over local manufacturing requirements and pricing. The breakthrough appears to have come in February, after Musk met with Indian Prime Minister Narendra Modi during his state visit to Washington. The two leaders spoke again by phone in April.

“Spoke to @elonmusk and talked about various issues,” Modi posted on X. “We discussed the immense potential for collaboration in the areas of technology and innovation.”

Spoke to @elonmusk and talked about various issues, including the topics we covered during our meeting in Washington DC earlier this year. We discussed the immense potential for collaboration in the areas of technology and innovation. India remains committed to advancing our…

— Narendra Modi (@narendramodi) April 18, 2025

Musk responded enthusiastically, saying, “I am looking forward to visiting India later this year!”

It was an honor to speak with PM Modi.

I am looking forward to visiting India later this year! https://t.co/TYUp6w5Gys

— Elon Musk (@elonmusk) April 19, 2025

For a company desperately needing to change the narrative, this pivot to a massive, untapped market could be the lifeline it needs. The question is whether a new chapter in India can be enough to fix the damage done at home.

Tesla did not immediately respond to Gizmodo’s request for comment.