Tesla Refunds Early India Bookings Signaling Entry Is Near

Tesla Inc.'s India office is refunding early bookers of its Model 3, according to emails seen by Bloomberg News, sparking speculation the American electric vehicle maker is nearing a roll out in the world's third-largest automobile market.

“We would like to return your reservation fee for the time being,” read the emails to customers who had made these bookings back in 2016. “When we finalize our offerings in India, we will reach out in the market again. We hope to see you back with us once we are ready to launch and deliver in your country.”

The Elon Musk-led car maker is refunding the years-old bookings since the older generation of the Model 3 is being discontinued.

The emails, sent from Tesla domains, are the latest sign that the car maker is planning to start sales in the South Asian nation after a years of pushing back on its high import duties.

Days ago, Musk said in a post on X that he'll visit India later this year, at a time when India is negotiating a trade deal with the US, which may involve lowering tariffs on automobiles.

A more favorable tariff structure may reshape Tesla's long-term plans. Its worldwide vehicle deliveries fell last year for the first time in more than a decade, as BYD Co. continues to pose a daunting challenge.

For India, Teslas on the streets would please its increasingly affluent upper-middle class population, but risks hurting domestic car makers that employ thousands of people in manufacturing plants.