Tesla (TSLA.US) India's head resigns abruptly and the localization layout is undergoing a transformation

The Zhitong Finance App learned that, according to people familiar with the matter, Tesla (TSLA.US) Regional Head Prashanth Menon has submitted his resignation, and this is a critical stage where the electric vehicle giant has decided to open the first batch of showrooms in Mumbai and New Delhi.

People familiar with the matter said that this executive, who has worked for Musk for nearly nine years, chose to leave office after being in charge of Tesla's board of directors in India for more than four years. As Chairman of the Board and Country Head of Tesla India Motors and Energy Pvt Ltd (Tesla India Motors and Energy Pvt Ltd), Menon laid an important foundation for the American car company's Indian layout — he established his first local office in Pune in 2021 and led the leasing of the first showrooms this year.

People familiar with the matter said that the Tesla China team will temporarily manage the Indian business, and no successor has yet been appointed. This personnel change comes at a time when Tesla is speeding up its entry into the world's third-largest automobile market.

Tesla did not respond to requests for comment. Menon himself declined to comment.

According to people familiar with the matter, Menon left his job due to personal reasons.

On the day the news of his departure came out, Indian media revealed that Starlink, a subsidiary of Musk, had just obtained a key operating license. Analysts pointed out that this may be linked to the automobile tariff relief agreement that India is currently negotiating with the US — India currently imposes tariffs of up to 110% on imported cars, and Musk, an important Trump adviser, is clearly receiving support from bilateral negotiations between the US and India.

Key points of strategic layout

People familiar with the matter said that although Tesla has obtained retail leases and expanded local recruitment, the scale of operations in India will be affected by global restrictions and developments in Tesla's other markets.

The final decision to launch a business in India is expected to be made by senior management, and Musk will retain control over global market priorities.

Tesla's India office last month began providing refunds to customers who pre-ordered their old Model 3 cars as early as 2016, indicating that Tesla is making preliminary preparations before the new model is officially launched in the country.

Reports in February of this year said that after many years of twists and turns, Tesla plans to test the waters of importing thousands of vehicles into the world's fifth-largest economy.