Power shift: How Tesla's turmoil is steering global capital towards India
In the high-stakes arena of global business and politics, few collisions make markets tremble like the fallout between a tech titan and a political juggernaut. This is exactly what unfolded in early June 2025 when Elon
Musk
, the CEO of
Tesla
and SpaceX, clashed publicly with former U.S. President Donald
Trump
. The result? This was a devastating blow to Tesla's stock, which plunged by over 14% in a single day, wiping out an estimated $150 billion in market capitalisation. This was not just a stock market blip; it was the most severe single-day loss for Tesla since its listing and one of the most dramatic wealth erasures in corporate history.
The catalyst? Trump's verbal attacks on Musk during a campaign rally, accusing him of being "disloyal" and threatening to cut off federal contracts and regulatory support for Tesla and SpaceX if he regains the presidency, were also included. Investors responded with a swift selloff, and Tesla's valuation fell below the trillion-dollar mark. Global markets watched in shock as this political-personal feud spilled over into financial chaos.
However, amid this volatility lies a powerful truth: in global disruption, emerging markets like India often find their greatest opportunities. As the U.S. grapples with political instability and tech industry turbulence, India stands poised to benefit from capital reallocation, tech realignment, and supply chain diversification. While damaging to U.S. markets, the Tesla shockwave could become a springboard for India's clean-tech and high-growth sectors.
India's EV Ecosystem: Charging Ahead as Tesla Slows Down
India has been on an accelerated path toward electrification, and Tesla's current struggles have only sharpened the global spotlight on India's domestic electric vehicle (EV) ecosystem. As Tesla faces regulatory headwinds and reduced investor confidence, India's homegrown EV sector is booming, powered by market demand and policy incentives.
In the fiscal year 2024–25, India's EV market crossed a new milestone with over 1.7 million
electric vehicles
sold, reflecting a 96% year-on-year increase. Leading the charge are Indian companies such as Tata Motors, Mahindra Electric, and Ola Electric, which have committed billions of rupees to expand their EV product lines, charging infrastructure, and battery assembly capabilities.
The Indian government's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles(FAME-II) scheme and the Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell Battery Storage worth ₹18,100 crore have further catalysed industry momentum. States such as Tamil Nadu, Gujarat, and Maharashtra have introduced EV-specific policies offering land, tax exemptions, and power subsidies to manufacturers. As global investors rethink high-risk bets in politically volatile environments such as the U.S., they are increasingly drawn to India's policy stability, market scale, and rising consumer demand.
Analysts at Morgan Stanley and Goldman Sachs recently highlighted India's EV sector as a 'structural investment theme' for the next decade. Tesla's hiccups may prompt global auto majors to partner with or invest in Indian EV startups as a hedge against Western uncertainty, creating an entirely new lane for India's industrial growth.
Supply Chain and Clean-Tech Investment: India as the Next Global Pivot
Tesla's valuation collapse was not just a corporate crisis; it exposed the deeper fragility of global supply chains tethered to geopolitical risks. Tesla's core supply lines depend heavily on rare earth elements (REEs), lithium, and semiconductors, many of which are sourced from China, South America, or politically sensitive regions.
With U.S.–China tensions rising and Trump threatening tighter trade policies, the world's clean energy future needs new anchors—and India is stepping into that vacuum. In response to the rising global demand and strategic concerns, India unveiled its Critical Minerals Strategy (2023), identifying 30 minerals, including lithium, cobalt, and nickel, as essential for national security and industrial development.
The Geological Survey of India discovered a significant 5.9-million-ton lithium reserve in Jammu and Kashmir—India's first—and auction processes are already underway for its commercial extraction. Meanwhile, India's semiconductor manufacturing mission—backed by a ₹76,000 crore incentive package—has begun bearing fruit. Micron Technology, in collaboration with Tata Group, is establishing chip assembly and testing units in Gujarat. These developments are being closely monitored by global players looking to diversify away from China and the U.S. India's proven IT prowess, skilled workforce, and competitive cost structures provide it with a unique advantage in scaling both battery and semiconductor supply chains.
According to BloombergNEF, global clean energy investments are expected to cross $2 trillion in 2025, and India is projected to attract nearly $60 billion, up from $45 billion in 2024. The Tesla–Trump debacle added urgency to this diversification. Indian companies working in battery storage, solar inverters, EV components, and green hydrogen can now tap into redirected global capital that would have otherwise flown into American companies.
Moreover, India's space technology sector, often overlooked, is quietly booming. As Trump's remarks also targeted SpaceX and its satellite network Starlink, Indian startups like Skyroot Aerospace, Agnikul Cosmos, and Pixxel are seizing the moment to attract international investments. With 30 private satellite launches scheduled for 2025 and a supportive government ecosystem, India's space economy could grow to $13 billion by 2026, up from $7 billion in 2022, according to the EY-ISpA.
Disruption for Some, Direction for Others
The Musk–Trump standoff may have caused a ripple of fear in U.S. markets, but for India, it is a signal to act. As Western investors reassess the risks of politicised corporate battles, India offers a pragmatic alternative rooted in stable policy, scalable infrastructure, and strategic clarity. The Tesla fallout, while costly for America's most iconic EV brand, might accelerate India's emergence as a global industrial and investment powerhouse. In the wreckage of a $150 billion loss lies the blueprint for India's trillion-dollar leap.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
17 minutes ago
- Indian Express
Bengal Assembly Resolution on Pahalgam terror Attack: Mamata slams Centre, says ‘Total failure, colossal lapse in internal security'
West Bengal Chief Minister Mamata Banerjee on Tuesday demanded the resignation of the BJP government at the Centre over the Pahalgam terror attack in which 26 men, mostly tourists, were killed, calling it a 'total failure of the government' and a 'colossal lapse' in internal security. Speaking in the Assembly during the passing of a resolution commending the Indian armed forces for their precision strikes on terror hubs in Pakistan during Operation Sindoor – though the resolution did not mention its name – the chief minister said India had a 'golden opportunity' to reclaim Pakistan-occupied Kashmir (PoK) during last month's military conflict but failed to act decisively as she questioned the foreign policy of the BJP government. 'We had an opportunity to take control of PoK. Instead, Pakistan has been allowed in a committee on terrorism created by the UN. Is there a flaw in our foreign policy?' she said. Demanding accountability from the Centre for what she called a 'colossal lapse' in internal security during the Pahalgam terror attack, the chief minister said: 'When terrorists attacked, there were no police there. Kashmir police is not controlled by the state government. Those who were attacked by the terrorists repeatedly asked for help. But no police personnel, Army men were there to help them… Why were no security forces or police personnel present at the spot? We don't know the attackers in Pahalgam till date. No one has been arrested…Why? How did such an attack happen in a high-security zone.. This is a total failure of government, a total failure of agencies.' Asserting that 'we don't support terrorism; it has no religion, caste, or creed', Banerjee said those responsible for the Pahalgam killings must be brought to justice without delay. She praised the Indian military action, stating, 'There was a need for teaching them a lesson. We salute the bravery of our armed forces.' Referring to Prime Minister Narendra Modi's roadshows following Operation Sindoor, the TMC chief said that he was only 'busy advertising himself'. 'You just roam around promoting sindoor. We respect sindoor. You don't respect women. Why didn't the Prime Minister visit Rajouri, Poonch sites (hit by Pakistan shelling)?' she asked. Accusing the BJP of trying to politicise the valour of the armed forces with an eye on elections, she also recalled how the BJP allegedly politicised the Pulwama terror attack in the past and warned against similar attempts to 'provoke unrest' ahead of the upcoming general elections. Pointing to the BJP legislators, who chanted 'Modi Modi', Banerjee said: 'Apnader bhoi laage… Election aele ekta Pulwama korte hobe, eta jeno na hoi ('We are afraid of you…when election comes, do another Pulwama, that should not happen)'. She was referring to Pulwama terror attack in which a suicide bomber targeted a convoy of the CRPF, killing nearly 40 personnel, on Februaray 14, 2019, months ahead of the Lok Sabha elections. The CM also questioned why the Prime Minister or Defence Minister Rajnath Singh did not visit any foreign country instead had sent parliamentary delegations composed of MPs from Opposition parties. 'You needed to send your own minister, your Defence Minister. You should have gone yourself. Instead of you going, you sent the opposition parties, they did that job. That's why I thank them for doing their job brilliantly,' she said. Seven parliamentary delegations were sent to major global capitals to reinforce India's diplomatic messaging following Operation Sindoor. Amidst the ruckus, Banerjee continued her attack on the Centre, raising questions, and the recent appointment of Pakistan as the vice chair of the UN's anti-terror committee. 'Pakistan has become the vice chair of the UN's anti-terror committee. How? Were we lacking in diplomatic relations?' she asked, while calling External Affairs Minister S Jaishankar 'a good person, a capable bureaucrat.' Pakistan, a non-permanent member of the Security Council for the 2025-26 term, will chair the Council's Taliban Sanctions Committee for 2025 and will be vice-chair of the Counter-Terrorism Committee of the 15-nation UN organ. She also expressed concern about India's diplomatic strategy with respect to Pakistan. 'I don't know if there is an issue with our diplomacy, as Pakistan is still getting loans from the IMF, instead of being cornered internationally,' the CM said. She added, 'I support the resolution because I think this strike was important to send a strong message. I pay my respects to those who lost their lives. Terrorism can never be forgiven.' Banerjee referred to reports of Pakistani spies being arrested from Gujarat, the home state of Union Home Minister Amit Shah. 'How did information from Modi-Shah's state reach Pakistan?' she asked. Tempers flared in the House when BJP legislators interrupted her speech. Banerjee shot back, calling the BJP 'uncivilised' and 'liars'. 'You are fake Hindus. My voice will drown out your noise. You only promote yourselves and insult the people of this country,' she said, addressing the BJP benches amid loud sloganeering from both the opposition and treasury benches. With PTI Atri Mitra is a Special Correspondent of The Indian Express with more than 20 years of experience in reporting from West Bengal, Bihar and the North-East. He has been covering administration and political news for more than ten years and has a keen interest in political development in West Bengal. Atri holds a Master degree in Economics from Rabindrabharati University and Bachelor's degree from Calcutta University. He is also an alumnus of St. Xavier's, Kolkata and Ramakrishna Mission Asrama, Narendrapur. He started his career with leading vernacular daily the Anandabazar Patrika, and worked there for more than fifteen years. He worked as Bihar correspondent for more than three years for Anandabazar Patrika. He covered the 2009 Lok Sabha election and 2010 assembly elections. He also worked with News18-Bangla and covered the Bihar Lok Sabha election in 2019. ... Read More
Time of India
17 minutes ago
- Time of India
Op Sindoor showed India now responds with strength if war imposed on it: Yogi
Lucknow: Chief Minister on Tuesday said that showcased India's military might and asserted that India now responds with strength rather than silence if someone imposes war on the country. Tired of too many ads? go ad free now Speaking at a press conference to highlight the achievements of the Modi govt at the Centre in past 11 years, the CM said that these years would be remembered as a "golden period in the making of a self-reliant India". "India now responds with strength rather than silence and if someone imposes war on the country, the answer will be in the form of Operation Sindoor. If someone encourages terrorism, the answer will be surgical strikes, air strikes and Operation Sindoor," Yogi said. "The whole world has seen the Indian military power, tested in Pakistan and trusted by the world," he added. "There was a tendency to chant the mantra of peace even in the face of aggression. But through the 'new normal' established under the current leadership, that approach has been completely reversed. Now, India responds with strength, not silence." He said that under Modi's leadership, India regained its honour on the global platform, which had "diminished during the 65 years of Congress and other unstable govts", he said. He said that PM Modi had given India a distinct global identity. "His governance is marked by service, good administration and welfare of the poor. Better service delivery on the ground has been assigned as primary duty and responsibility in the BJP ruled states," Yogi said. "Country has become free of corruption and nepotism while appeasement of community has been discouraged. Before 2014, country was facing various threats and vulnerabilities but after Modi took over, New India has leaped on the path of progress," he added. Tired of too many ads? go ad free now "The vision of 'Ek Bharat, Shreshtha Bharat' (One India, Great India) is being realised. India's 140 crore citizens have witnessed the govt's firm commitment to national unity and integrity, as well as its decisive approach towards security and terrorism," he added. Highlighting economic progress, he said the country's economy made great strides under PM Modi. "Through constant monitoring and thoughtful spending outlay, our country has become fourth largest economy in the world. India is the only country which has managed to double its per capita income from Rs 79,000 in 2013-14 to Rs 2.5 lakh. Soon, the country will climb to the third spot," he said. "Before 2014, India was marked by instability. Economy was uncertain, and people lacked confidence about the country's future. From 1947 to 2014, India had only managed to become the world's 11th largest economy and even that was fragile," he said. "Focus has been on deploying technology tools. Our govt has redefined the way IT services and direct beneficiary transfers are taking place," Yogi said. Referring to the abrogation of Article 370, Yogi said that decision brought Jammu, Kashmir and Ladakh fully into the constitutional fold. Pointing towards the way infrastructure has been augmented, Yogi said that pace of highway construction had tripled — from 11km per day during the UPA era to over 35km per day at present. "Successful coordination of faith and economy has created a new model of development, with spiritual heritage becoming a catalyst for economic growth," he said and cited the example of the Maha Kumbh, where five new economic corridors emerged, boosting employment and regional economies. "Under Lakhpati Didi Yojana, the goal is to make 3 crore women financially independent. Already, 10 crore women have joined over 90 lakh self-help groups. Presently, 14,500 schools are being upgraded under PM Shri school for foundational education. Since 2014, 8 new IITs, 7 IIMs, 490 new universities have been established and 8.6 lakh jobs were created through PSUs," Yogi said. "PM's vision of 'Healthy India, Capable India' has brought unprecedented reforms in the country's healthcare sector. While Congress govts built only one AIIMS, Atal Bihari Vajpayee added six, and Prime Minister Modi expanded the number to 23 — including two in Uttar Pradesh (Gorakhpur and Rae Bareli)," he said. "Till 2014, India had just 180 medical colleges but now there are 2,045 medical colleges nationwide, with 80 in Uttar Pradesh alone," Yogi said. He said that under Ayushman Bharat, over 50 crore people had been provided health cover and free treatment worth Rs 1.3 lakh crore. "Through e-Sanjeevani, over 37 crore teleconsultations have been provided, transforming healthcare accessibility across India," he said.
The Hindu
17 minutes ago
- The Hindu
How can Pak. lead the fight against terror, asks Rajnath
Defence Minister Rajnath Singh on Tuesday (June 10, 2025) expressed shock over a recent United Nations Security Council (UNSC) decision to name Pakistan as the vice-chair of its counter-terrorism committee, stating that it raised serious questions on the intentions and policies of the international organisations. Stating that the same committee had been set up after the 9/11 terror attacks in the U.S., he said Pakistan had sheltered the mastermind of that attack. 'Its land has been used as a refuge by global terrorist organisations. There, terrorists like Hafiz Saeed and Masood Azhar roam around openly, and senior officers of Pakistan Army attend the funerals of terrorists. Now, the same country is expected to lead the global community against terrorism. This raises serious questions on the intentions and policies of the international system,' he said at an event in Uttarakhand's Dehradun, also attended by Chief Minister Pushkar Singh Dhami. The Defence Minister called upon the global community/organisations such as United Nations to think on issues like terrorism 'more seriously', noting that the goal of global peace, progress, and prosperity could be achieved only by ending terrorism. He said the common people of Pakistan were of the same view, but the 'rulers' there had put that country on the path of destruction, said a government release. 'Stop funding Pak.' Mr. Singh urged the international community to stop foreign funding to Pakistan, saying: 'Funding Pakistan means funding the infrastructure of terrorism.' He said the international community should put strategic, diplomatic, and economic pressure on Pakistan to deal with terrorism. The Defence Minister said that under the Prime Minister Narendra Modi-led government over the past 11 years, there was a decisive shift in the approach towards issues of national security. '...and the world witnessed this shift during Operation Sindoor,' he said. 'PoK will join us' Following the removal of special status to Jammu and Kashmir, Pakistan could not tolerate peace and progress in J&K and carried out the terror attack in Pahalgam, he said. 'Despite Pakistan's best efforts, it has not been able to stop development in Kashmir. The Udhampur-Srinagar-Baramulla railway link is a shining example of the government's relentless pursuit of progress in J&K. Soon, PoK (Pakistan-occupied Kashmir) will join us and say 'I, too, am Bharat',' he said. He advised Pakistan to seek India's help if it was unable to take action against terrorism on its soil, stating that the Indian armed forces were capable of executing counter-terror operations on either side of the border. About the growth in domestic defence sector, Mr. Singh said it was now one of the strongest pillars of a self-reliant India. From ₹2.53 lakh crore in 2013-14, the defence budget increased to ₹6.22 lakh crore in 2024-25, with 75% of the budget reserved for capital procurement from domestic companies. Ten positive indigenisation lists, comprising over 5,500 items, were issued. 'Our indigenous missiles such as Agni, Prithvi, and BrahMos stand ready to give a befitting reply to the enemy. We also have the strength to build aircraft carriers such as INS Vikrant,' he said. Mr. Singh said the annual defence production – worth about ₹40,000 crore in 2014 – had now crossed ₹1.30 lakh crore; exports shot up to ₹23,622 crore in 2024-25 from ₹686 crore in 2014. 'We have set a target of ₹1.75 lakh crore defence production this year and ₹3 lakh crore by 2029. Our defence exports should reach ₹30,000 crore this year, and ₹50,000 crore by 2029,' said the Defence Minister. 'Stop spread of lies' Concerned over the growing information warfare, he urged people to become 'social soldiers by identifying lies, stopping rumours, and spreading awareness in society'. During Operation Sindoor, he said, Pakistan used fake videos, manipulated news, and social media posts in a bid to spread misinformation. 'Even though military actions have been stopped, information warfare is still going on... the government is working on cyber security at its level, but every citizen needs to be the 'first responder',' said Mr. Singh. He said the media should also accord priority to accuracy rather than vying to be 'ahead'. 'Journalism is not just a profession but a national duty. It informs while keeping us alert and vigilant towards the security of the country. Free and healthy journalism is a stabilising force that makes the society alert, unites it, and spreads consciousness,' he said.
