Indian officials have cooled hopes for a Tesla production unit as the company has stopped contacting them, Bloomberg reports.
Tesla has not followed up on inquiries from Indian officials, dimming expectations for an investment in the country.
Tesla's financial issues and no plans for fresh funds in India have contributed to the cooling interest, sources say.
Tesla faces a drop in global deliveries and increased competition in China, adding to its challenges.
India turns to domestic automakers like Mahindra & Mahindra and Tata Motors to boost EV production amid Tesla's hesitation.
India's EV market is still nascent, with battery-powered cars making up just 1.3% of the total in 2023, BloombergNEF reports.