Tesla Loses India Policy Exec After Shelving Expansion Plans: Report

Tesla Inc’s TSLA policy and business development executive in India, Manuj Khurana, has resigned, Reuters reported on Tuesday, citing two sources aware of the matter.

What Happened: Khurana’s resignation comes weeks after the U.S. electric vehicle company put on hold plans to sell electric cars in India amid regulatory challenges linked to high import duties. 

The executive was hired for the position in March last year and was instrumental in putting together the plan for Tesla’s India entry.

During his time with Tesla, Khurana lobbied with India’s government to lower the import tax on electric cars to 40% from as high as 100%.

India, on the other hand, wanted Tesla to manufacture cars locally and proposed incentives if it decided to set up a plant in the country.

See Also: Tesla's India Team Shifts Focus To Wider APAC Region Amid Regulatory Woes

Khurana has reportedly shifted to California to take up a product role.

Media reports also say Tesla is scouting for locations in Indonesia to set up its next factory and be nearer to sourcing key minerals for batteries. 

Why It Matters: Musk this month reportedly warned of job cuts at the EV company, telling employees that Tesla is "pausing all hiring worldwide" as he had a "super bad feeling" about the economy.

Musk had said he wanted to cut 10% of jobs at Tesla, although he later clarified that its "total headcount will increase."

See Also: Tesla Lays Off Singapore Manager A Year After Hiring Him

Price Action: Tesla closed 2.4% higher at $662.6 on Tuesday, according to data from Benzinga Pro.