Tesla’s $1,000 pre-booking sours India launch

Tesla’s arrival in India has triggered frustration rather than the expected fanfare amongst its earliest Indian supporters, many of whom had put down a $1,000 deposit nearly a decade ago. They never received their Tesla, and getting the deposit back left a bitter experience with the Elon Musk-owned brand.

Vishal Gondal, founder and CEO of GOQii, a fitness technology company, pre-booked a Model 3 in 2016 just hours after registrations went live. But after visiting Tesla’s showroom in Bandra-Kurla Complex, he told TechCrunch, “I felt a little bit underwhelmed.”

His disillusionment started much earlier when he had to chase the company for a refund in 2023 after being kept waiting for his car. “Trying to get the money back was a problem,” he told TechCrunch. “And the joke was, had we invested that money in Tesla IPO stock, we would have made more money.”

For many early backers, Tesla’s debut in India felt cold and indifferent. “The least Tesla could have done was email all the people who reserved the car earlier and said, ‘Guys, we are going to have a special event for you’,” Gondal said. “Those people really went out of their way, and even though let’s say it’s not a big amount, it was saying that we support Tesla.”

TechCrunch reports similar frustrations among other early enthusiasts. “It is frustrating to see Tesla take so long. I mean, our government and processes and red carpet are hard, but it’s hilarious that even Starlink has gotten approval in a shorter period,” said early Tesla backer Varun Krishnan, who runs FoneArena, a tech blog.

Tesla’s failure to acknowledge its earliest Indian customers has led to concerns about brand recall, especially since many of these individuals, including Paytm founder Vijay Shekhar Sharma, are considered influential voices. “People like Vishal or Vijay, they are taken with a lot of authority. So, if they are buying something, there would be 100 people going by their word.”

Sharma told TechCrunch he would not go with a Tesla and would rather wait for a larger portfolio of cars.

“It may be a bit too late,” he said. “There are so many other options with price-value math more suited for India.”

Amit Bhawani, founder of tech blog Phoneradar, described the Mumbai launch as “the coldest launch.” He had booked a Model 3 in 2016, but his excitement turned into resentment after being forced to release a YouTube video in 2020 criticising Tesla, which eventually led to his refund.

The Model 3, for which many Indians put down the early deposit, never made it to the country. Tesla instead launched the Model Y this month at an eye-watering Rs 59.89 lakh (approximately $68,000), nearly 50 percent higher than its United States price owing to import duties. With no local manufacturing and minimal charging infrastructure, even the most loyal early adopters are reconsidering their purchase decisions.

“After all these years I have waited, I’m in no hurry to buy it now and become the first one to have it, because what’s the point? I waited nine years? I can wait nine years and six months more,” Kawaljit Singh Bedi, co-founder and CTO of Frammer AI, told TechCrunch.

Even Arun Bhat, founder of Tesla Club India, suffered after booking a Model 3 in 2016. “You paid something and you ardently waited for 10 years, and then out of the blue, they just tell you, we’ll cancel it and we’ll refund, then what happens — 10 years having waited for something, will we be given preferential treatment?” he questioned. “There’s zero communication regarding that. So, eight out of 10 reservation holders are frustrated.”

The $1,000 pre-booking led to years of anticipation but no product delivery, no consistent communication and no reward for brand loyalty. Instead of creating excitement, Tesla’s India entry appears to have alienated some of its earliest believers.