India is not expecting Tesla (NASDAQ:TSLA) to proceed with investments in the country as communication between the electric carmaker's executives and Indian officials has ceased, sources familiar with the situation reported.

After a planned visit by CEO Elon Musk to India was postponed in late April, there have been no further inquiries from Musk’s team with officials in New Delhi.

The government believes that Tesla is facing capital constraints and does not plan to commit new investments in India in the foreseeable future.

This waning interest in the Indian market coincides with Tesla experiencing a global decline in quarterly deliveries for the second consecutive quarter and increasing competition in China.