Regulatory policy

Tesla loses Indian policy executive after scrapping expansion plans

Tesla is TSLA policy and business development manager in India, Manuj Khuranaresigned, Reuters reported Tuesday, citing two sources with knowledge of the matter.

What happened: Khurana’s resignation comes weeks after the US electric vehicle company suspended plans to sell electric cars in India amid regulatory challenges over high import duties.

The executive was hired for the job in March last year and was instrumental in crafting Tesla’s India entry plan.

During his time with Tesla, Khurana lobbied the Indian government to lower the import tax on electric cars to 40% from 100%.

India, on the other hand, wanted Tesla to manufacture cars locally and offered incentives if it decided to locate a factory in the country.

See also: Tesla’s India team focuses on broader APAC region amid regulatory issues

Khurana reportedly moved to California to take on a product role.

Media also say Tesla is looking for sites in Indonesia to set up its next factory and get closer to supplying key battery minerals.

Why is this important: This month, Musk reportedly warned against job cuts at the electric vehicle company, telling employees that Tesla is “suspending all hiring globally” because 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 his “total headcount would increase”.

See also: Tesla fires its Singapore director a year after hiring him

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