According to sources cited in media reports, Tesla Motors (TSLA.US) has received only over 600 electric vehicle orders since beginning sales in India in mid-July, falling short of the company's own expectations.

In July, Tesla Motors launched the Model Y in India at approximately $70,000. This pricing reflects India's hefty tariffs on imported electric vehicles. The American electric vehicle manufacturer has long lobbied India to reduce automotive import tariffs.

Due to excess global factory capacity and declining sales, Tesla Motors adopted a strategy of selling imported vehicles in India despite tariff and tax pressures. The Model Y's reception in India reveals Indian consumers' acceptance level of high import tariffs.

Tesla Motors CFO Vaibhav Taneja stated during the company's first-quarter earnings call that high tariffs had been a significant obstacle in Tesla Motors' decision-making process regarding when to enter the Indian market.

Reports indicate that Tesla Motors currently plans to ship 350 to 500 electric vehicles to India this year, with the first batch scheduled to arrive from Shanghai in early September.

Initial deliveries will be limited to Mumbai, New Delhi, Pune, and Gurgaon, with delivery scale dependent on full payments received by the company and its capacity to deliver beyond these four cities where it has physical presence.

Despite improvements in India's road infrastructure, traffic regulations—such as lane discipline—remain rudimentary. The scarcity of electric vehicle charging stations, stray animals (including cattle) on roads, and potholed streets (even in cities) pose significant obstacles.

Notably, Tesla Motors' weak global sales performance appears to show no significant improvement. As the electric vehicle manufacturer grapples with CEO Elon Musk's aggressive political stance toward Europe, autonomous driving regulatory challenges, and intensifying electric vehicle market competition, the company continues to report weak sales data in European markets, with some European markets showing eight consecutive months of decline.

Data released Monday by Sweden's automotive industry data agency Mobility Sweden showed Tesla Motors' vehicle registrations in Sweden plunged 84% year-over-year in August, dropping from 1,348 units in the same period last year to 210 units.

French data released Monday showed new Tesla Motors registrations in August fell 47.3% compared to 2024, while France's overall automotive market grew nearly 2.2% during the same period.

Tesla Motors has shown weakness across European markets this year. According to European Automobile Manufacturers Association (ACEA) data, despite rising overall electric vehicle sales in Europe, Tesla Motors' July sales in Europe still declined 40% year-over-year to just 8,837 units, marking the seventh consecutive month of declining sales.