Tesla Faces Allegations of Manipulating Driving Range Amidst India Factory Announcement




Tesla, the electric vehicle (EV) pioneer, has been relentlessly striving to establish a strong foothold in the Indian automotive market. Last week, the company held a high-level meeting in India, proposing the construction of a dedicated factory to manufacture affordable electric cars. However, amidst these ambitious plans, Tesla faced serious allegations from Reuters, accusing the company of manipulating driving range predictions on its vehicles.

Tesla’s India Expansion Efforts:

In its pursuit of expanding into India, Tesla’s executives, including Rohan Patel and Roshan Thomas, engaged in discussions with key officials from Invest India, the Indian government’s official investment promotion and facilitation agency. The aim was to explore possibilities of establishing a robust electric vehicle supply chain and securing suitable locations for the proposed factory. The company also had plans to meet with Piyush Goyal, the Minister of Commerce and Industry, to discuss potential prospects.

Accusations of Manipulated Driving Range:

However, amidst the optimistic news of Tesla’s India venture, Reuters released a report suggesting that the automaker had manipulated driving range predictions on its vehicles. According to anonymous sources, CEO Elon Musk allegedly instructed a secretive internal team called the “Referral Team” based in Nevada, USA, to cancel service reservations related to driving range issues.

The report further claimed that managers within the “Referral Team” informed employees that each canceled reservation could save the company approximately $1,000. This financial incentive apparently led to employees celebrating successful cancellations, at times even applauding and standing on desks to acknowledge their achievement.

Market Reaction:

Following the Reuters report, Tesla’s stock experienced fluctuations. Initially, on Thursday, the stock price declined by 3.27%. However, the stock regained momentum on Friday, closing at $266.86, reflecting a 4.36% increase.

The Significance of Transparency and Trust:

The allegations made by Reuters raise concerns about the transparency and ethics of Tesla’s practices. Trust is a vital aspect of any successful business, and maintaining it is essential for Tesla’s long-term growth and reputation. As the world’s leading EV manufacturer, Tesla must prioritize transparency and accountability to uphold its position as an industry leader and gain the confidence of consumers and investors alike.


As Tesla forges ahead with its ambitious plans for a dedicated factory in India, it must not lose sight of the importance of transparency and ethical practices. Allegations of driving range manipulation demand a thorough investigation and a commitment to rectify any wrongdoing. In the face of these challenges, Tesla has the opportunity to demonstrate its commitment to ethical conduct and regain trust from stakeholders.

As electric vehicles play a crucial role in combating climate change and promoting sustainable transportation, Tesla’s efforts in India can have a significant impact on the country’s automotive landscape. However, a genuine commitment to transparency and ethical practices is paramount for Tesla to be a positive force for change in India and beyond.