Tesla restarts search for Delhi showroom with DLF, sources say

Tesla restarts India showroom search, considering New Delhi; Musk wants to launch Starlink in India.

Elon Musk's Tesla has resumed its search for showroom space in the national capital, two sources told Reuters, in the first sign it is rethinking entering the Indian market after putting its investment plans on hold earlier this year.

Mr. Musk said in April he would meet Prime Minister Narendra Modi during a trip where he was to potentially announce an investment of $2-3 billion in India. However, he called off his visit at the last moment after Tesla decided to sack 10% of its staff amid falling sales.

Tesla, which had paused its search for a showroom in India in recent months, is now in early-stage talks with DLF to help secure space in the capital region, said the two sources, who have direct knowledge of the situation.

A third source said it is not certain that Tesla's talks with India's biggest property developer will lead to a deal and the electric vehicle giant is also in discussions with others.

Tesla and DLF did not respond to requests for comment.

One of the sources said Tesla is looking for 3,000 to 5,000 square feet (280-465 square metres) to create a consumer experience centre as well as a space three times larger for its delivery and service operations.

Tesla is evaluating multiple locations including DLF's Avenue Mall in southern Delhi and the Cyber Hub office and retail complex in nearby Gurugram city, the source added.