Elon Musk's Tesla is scaling back its efforts in India as government officials temper expectations, while the electric vehicle manufacturer confronts challenges on a global scale.

Indian officials have tempered their expectations regarding the establishment of a Tesla production facility in the country, according to a Bloomberg report. Executives from Tesla, led by Elon Musk, have ceased communications with Indian authorities, leading to a dwindling likelihood of the investment moving forward. This information comes from sources familiar with the situation.

The report highlights that Tesla's lack of follow-up with New Delhi officials has contributed to the reduced optimism. This development follows Musk's decision to delay his planned visit to India in April. Sources have indicated that the Indian government has been informed about Tesla's financial challenges, suggesting that the electric vehicle manufacturer does not intend to allocate new funds to Indian ventures at this time.

Neither Tesla nor representatives from India's Union Ministry of Heavy Industries have responded to requests for comments on the matter, as per the Bloomberg report.