Tesla’s $25K EV? It Might Be a Mirage 🚗💨

☀️ Good Morning, Masala Crew!

It’s Tuesday, June 3—and this week is already spinning faster than Elon Musk’s tweets. From budget EV drama at Tesla to fresh capital for Pepperfry and Snitch’s fashion flex, today’s brew is a wild ride across tech, retail, and robo-future roads. Strap in and sip up 👇

☕ Chai Shots

• ✈️ IndiGo CEO Defends India's Flight Cap Policy Amid Emirates Push: As Emirates renews its plea to expand India-Dubai flight rights, IndiGo CEO Pieter Elbers pushed back, stressing that air travel rights are mutual agreements—not one-sided demands.

• 🚘 Tesla’s EV Mystery Deepens: Elon Musk told the world a low-cost Tesla is still in the works—but insiders say it’s been quietly scrapped in favor of robotaxis. The confusion has left investors baffled, suppliers in limbo, and legal eagles circling. More in the Big Brew 👇

• 📡 Vodafone Idea Seeks AGR Relief, Eyes ₹20,000 Cr Funding Boost: Vodafone Idea is back at the Centre’s door after the Supreme Court denied relief on its massive AGR dues. The telco is pushing for a government intervention while negotiating with banks to unlock long-awaited debt funding.

• 🚛 Udaan Bags $114M in Flat Series G to Fuel Rural FMCG Push: B2B ecommerce major Udaan just locked in $114 million in fresh equity as part of its Series G round, with M&G Investments and Lightspeed steering the pack. The Bengaluru-based firm kept its $1.8 billion valuation steady from its last raise—down from its 2021 peak of $3.2 billion—making this a flat round.

📈 Market Masala

• 📉 Markets See Midday Jitters, Close Near Day’s Highs: Sensex dropped 77 points to 81,374 and Nifty fell 34 points to 24,717—but both indexes staged smart second-half recoveries. The broader market outshone largecaps again, with the Nifty Midcap index climbing 154 points to 55,903, a solid 600-point bounce from intraday lows.

• 🏦 Nifty Bank Inches Toward Record: Banking stocks rallied, with Nifty Bank rising 356 points to 57,776. Kotak and Axis trimmed FD rates this week, hinting at improved liquidity and a dovish outlook.

• 🚆 MakeMyTrip Adds Forecasting Flair to Train Bookings: Train travelers, rejoice! MakeMyTrip just rolled out a Seat Availability Forecast feature that predicts when trains are likely to sell out. With 40% of users booking across multiple sessions and 70% of them ending up waitlisted, this tool could be a game-changer.

• ⛽ Petrol Sales Surge 9% in May, Diesel Lags Behind: India’s petrol demand jumped nearly 9% YoY in May to 3.76 million tonnes, fueled by summer travel and holiday road trips. Diesel, by contrast, grew just 2% as usage in transport and agriculture stayed muted.

• 🚗 EV Red Carpet Rolls Out, But Tesla’s Skipping: India’s new electric vehicle policy is drawing attention from Mercedes-Benz, Hyundai, and VW-Skoda—but not Tesla. The rules offer slashed import duties (15% vs. 100%) for pricier EVs if automakers pump $500M into a local plant within 3 years. Brands get to import up to 8,000 cars annually under this incentive. To qualify, they must also localize production—25% by year 3, 50% by year 5. Tesla, however, seems content with setting up showrooms, not factories, leaving the big manufacturing play to others.

🌍 Global Masala

• 📈 US Markets Rally Despite Tariff Turmoil: The S&P 500 and Nasdaq closed higher as investors shrugged off renewed US-China-EU trade tensions, betting on Fed rate cuts and riding Big Tech’s momentum—marking the S&P’s best May since 1990.

• 🧠 Neuralink Raises $650M to Expand Human-AI Interface Trials: Elon Musk’s brain tech venture, Neuralink, just secured a hefty $650 million in fresh funding from top VCs like Sequoia, ARK Invest, and Founders Fund. The capital will help scale its brain-computer interface, “Telepathy,” which lets users control devices with their thoughts.

• 💊 Bristol Myers, BioNTech Ink $11.1 Bn Cancer Drug Deal: Bristol Myers Squibb is partnering with BioNTech in a deal worth up to $11.1 billion to co-develop BNT327, an experimental cancer immunotherapy that targets solid tumors. The deal includes $3.5 billion in guaranteed payments and up to $7.6 billion in future milestones. BNT327, which uses a dual-action approach to boost immunity and block tumor blood supply, is seen as a challenger to Merck’s blockbuster Keytruda.

🍵 The Big Brew: Tesla’s Affordable EV—Alive, Dead, or AI-Hyped?

The dream of a $25,000 Tesla has long haunted both fans and investors. And over the weekend, it stirred up fresh confusion—thanks to, you guessed it, Elon Musk.

• 🔄 He Said, They Said: Musk tweeted last year that reports of the budget Tesla being canned were false. But multiple execs say it was killed internally—and no one told suppliers or investors otherwise.

• 🚕 Robotaxi Pivot: Instead of launching an all-new affordable EV, Tesla appears to be going all-in on robotaxis and autonomous driving. Musk’s August 8 “Cybercab” launch has now been delayed.

• 💸 Investor Turmoil: Some investors, still hoping for a mass-market model, are frustrated by Tesla’s radio silence and model overlap. Even big backers have sold shares citing lack of product differentiation.

• ⚖️ Legal Fog: Experts warn Musk’s mixed signals might attract SEC attention. His past run-in cost him $40M in fines—could history repeat?

• 📉 Sales Slide: Tesla posted its first annual sales decline in 2024, with a 13% Q1 drop this year. Meanwhile, China’s BYD is racing ahead in Europe.

🎭 Bottom line: Tesla’s low-cost EV is either a ghost or a very delayed idea. Either way, investors and consumers are losing patience.

🚀 Startup Scoop

• 🪑 Pepperfry Reloads With ₹43 Cr: Home décor player Pepperfry bagged ₹43.3 crore from longtime backers like GE, Norwest, and Goldman Sachs. The fresh funds will power store expansion, help launch new D2C brands, and prep the company for a potential IPO comeback—after shelving it last year.

• 🧥 Snitch Bags $40 Mn & Goes Quick: Menswear disruptor Snitch raised $40 million in Series B funding led by 360 ONE Asset. With 120% YoY growth, the brand is now plotting an offline blitz (over 100 stores), quick commerce integration, and international launches.

• 💳 Spense Gets ₹15 Cr To Fix Fintech Infra: Bengaluru-based Spense, co-founded by former Uber and BNP Paribas execs, raised $1.85M to help banks and fintechs roll out secured credit cards, prepaid tools, and forex solutions. Their plug-and-play infra promises faster, compliant launches for underserved segments.

• 🛒 Meesho Issues 411 Cr Bonus Shares Ahead of IPO: SoftBank-backed Meesho approved a 47:1 bonus share issue, raising its paid-up capital to ₹420 Cr. The move comes as the company eyes a $1 Bn IPO at a $10 Bn valuation, having cut FY24 losses by 82% and grown revenue 33% to ₹7,615 Cr.

☕ Chai Break Trivia

⛳  Chai Break Trivia Did you know that golf is the only sport to have been played on the moon? 🌕In 1971, astronaut Alan Shepard took a few swings with a makeshift six-iron during the Apollo 14 mission, sending golf balls soaring in the moon's low-gravity environment.

Talk about taking your game to new heights! 🚀

🔮 What’s Brewing Next?

• 📅 June 4-6 – RBI’s next monetary policy review. Will rates stay steady?

💬 That’s a wrap on today’s brew, Masala Crew!

From robotaxis to retro juice boxes, we’ve stirred up stories across tech, trade, and tart nostalgia. See you tomorrow with another helping of headlines—hot, spiced, and served with a smile. ☕🇮🇳