India and China are vying for the opportunity to partner with the world's richest man.
Beijing and New Delhi want Elon Musk to build a $3 billion Tesla "gigafactory" there.
India was confident that they had already effectively managed to reach an agreement with the American, but he suddenly chose to go to China, writes the Financial Times (FT).
New Delhi views Beijing as a geopolitical rival. Musk's decision has left Indian Prime Minister Narendra Modi confused.
The politician's promise that a Tesla "gigafactory" would be built in the country added a lot of votes to his tally during the elections.
The FT notes that Musk declined a visit to India and instead visited China, where he agreed to cooperate with the company Baidu.
The businessman knew he was putting Modi in an awkward position, but his aides convinced him to focus on China. Musk eventually postponed his trip to India.
Earlier it became known that the Chinese company Xiaomi launched a factory where only AI robots work.