News
Tesla India plans take a hit as Minister shoots down talks of import tax reduction
Tesla’s entrance into India took a giant step backward as Government officials shot down the potential for import duty reductions on Monday. Attempting to enter the Indian automotive market with its sustainable vehicles, Tesla has petitioned for lower import taxes before committing to a Gigafactory in India. Still, the automaker and the government seem to be having trouble working on an agreement that would keep both parties interested.
After applying for and receiving two business licenses in India, Tesla seemed to be working toward an imminent entrance into the market. Rumors of a potential Gigafactory India have echoed through the community of well-known followers of Elon Musk, but the Tesla CEO shot down any potential of the automaker establishing production lines in the country in July.
Elon Musk: If Tesla can be successful with imports, India Gigafactory “likely”
“If Tesla is able to succeed with imported vehicles, then a factory in India is quite likely,” Musk Tweeted on July 23rd. Essentially, this statement eliminated any potential for a Tesla Gigafactory in India if the automaker could not first test demand for its products in the country. A smart move financially, Tesla spends hundreds of millions, even billions of dollars on production facilities. It would be a big gamble for the young and quickly-charging automaker to establish a full-blown residency in India without any sort of real-world data hinting toward robust demand. The government is willing to let import duties be lightened to 40%, as long as Tesla commits to building a factory in India at some point. This requirement throws a wrench into Tesla’s plans, as it is not willing to agree to these terms currently.
If Tesla is able to succeed with imported vehicles, then a factory in India is quite likely.
— Elon Musk (@elonmusk) July 23, 2021
“No such proposal is under consideration”: Minister
Now, Minister Krishan Pal Gurjar says that there is no talk of the government considering a reduction of import duties. On Monday, he told Parliament (via Bloomberg):
“No such proposal is under consideration in Ministry of Heavy Industries.”
Government ministries are currently run under Prime Minister Narendra Modi, who has emphasized tremendous support for local manufacturing efforts. The government, at this time, seems unwilling to consider reduced import duties or Tesla’s import plans at all because local manufacturing has taken priority.
India is not a country with a robust history of electrification, either. EVs accounted for less than 1% of annual car sales, despite being Asia’s third-largest country. Additionally, EVs are not in heavy demand in India due to higher production costs and minimal charging infrastructure, Maruti Suzuki India Ltd., Chairman R.C. Bhargava said in an annual report released earlier today. “Unfortunately, the technology presently available leads to electric cars being produced at a cost much higher than the conventional cars. This, along with the lack of charging infrastructure, makes it very difficult to sell electric cars to people who can only afford small cars.”
Import Duties are Getting in the Way
Imports are a tough thing to get by for consumers in India. Because of the heavy import duties the country has applied on vehicles, many consumers are unwilling to spend what the tax adds on to the price of the car. For vehicles under $40,000, import duties are 60%. Any car that costs more than that is subject to a 100% tax, doubling the price of the car.
This has been perhaps Tesla’s only barrier for entering the market as a vehicle manufacturer without building a factory there. Tesla already could export vehicles from Giga Shanghai to India, but few are willing to pay the massive price tag that comes with the car due to the duties. It is unknown what Tesla will do moving forward, but the automaker and the Indian government seem to be playing a game of chicken, seeing who will make the give up potential requests to move toward a deal.
What do you think? Let us know in the comments below, or be sure to email me at joey@teslarati.com or on Twitter @KlenderJoey.
News
Tesla Sweden faces new pressure in Sweden as Assa Abloy joins union action
The sympathy strike will block Assa Abloy’s 330 employees across six Swedish facilities from servicing or maintaining locks and gates used at Tesla Sweden’s sites.
The labor standoff between Tesla and Sweden’s IF Metall union has widened again, this time pulling in Assa Abloy Industrial, a manufacturer of industrial doors and locks.
IF Metall announced a new sympathy strike halting all Assa Abloy services for Tesla, set to take effect November 4, according to Dagens Arbete (DA). The move is aimed at further pressuring Tesla into signing a collective agreement after nearly two years of ongoing labor conflict.
New strike targets Tesla’s industrial operations
The sympathy strike will block Assa Abloy’s 330 employees across six Swedish facilities from servicing or maintaining locks and gates used at Tesla Sweden’s sites. IF Metall hopes the measure will disrupt Tesla’s daily operations and highlight the growing solidarity among Swedish companies.
Assa Abloy becomes the latest in a line of firms drawn into the dispute, with the Swedish Mediation Institute now logging fourteen conflict notices since September. The escalation shows that unions and partner industries are aligning to support of IF Metall’s campaign to secure a collective bargaining deal, something Tesla has consistently resisted.
IF Metall says Tesla must understand Sweden’s labor model
IF Metall chair Marie Nilsson recently reiterated her call for Tesla Sweden to reconsider its stance on organized labor, noting that Sweden’s union system differs sharply from the more adversarial model in the United States.
“I can certainly understand that Elon Musk and Tesla are skeptical of the trade union movement,” Nilsson said. “They have experience with American unions that operate in a completely different environment and that have to be militant in a different way.”
Nilsson emphasized that Swedish unions function cooperatively and that signing a collective agreement locally does not commit Tesla to similar deals elsewhere. “Let’s give us a chance,” she added. “It is the practical system we have here to regulate the conditions.”
News
Elon Musk: Tesla autonomous driving might spread faster than any tech
The CEO noted that “hardware foundations have been laid for such a long time.”
Elon Musk has shared one of his most optimistic forecasts for Tesla’s self-driving rollout yet. As per the CEO, Tesla’s self-driving system could see the fastest technological adoption in history, thanks to the fleet’s capability to gain autonomous capabilities through a software update.
The CEO shared his forecast in a post on social media platform X.
Tesla’s aims to scale autonomy
Musk’s comment came as a response to industry watcher Sawyer Merritt, who posted a comparison between the geofence of Tesla’s Robotaxi network and Waymo’s service area. As can be seen in the graphic, Tesla’s Austin geofence has gotten noticeably larger compared to Waymo’s service area.
In his response, Musk stated that “Tesla autonomous driving might spread faster than any technology ever.” He also stated that “hardware foundations have been laid for such a long time,” as a software update could unlock full autonomy “for millions of pre-existing cars in a short period of time.”
Musk’s comment bodes well for Tesla’s Robotaxi ambitions, which seem to be finally in reach with the deployment of Unsupervised FSD in vehicle factories, as well as Austin and the Bay Area. For now, however, Tesla’s Austin Robotaxis and Bay Area ride-hailing vehicles are still operated with a safety monitor in the driver’s seat.
Tesla’s latest Austin expansion
Tesla recently expanded its Austin Robotaxi service area this week to 243 square miles, its largest yet and nearly triple the coverage from two months ago. The move outpaces Waymo’s local service footprint, which remains at around 90 square miles.
The expansion marks Tesla’s second major Austin update since August and emphasizes its push to dominate the autonomous ride-hailing landscape. With both Tesla and Waymo racing to prove scale and reliability, Musk’s confidence suggests the real contest may be about who can move fastest once the tech flips on across Tesla’s fleet. Once that happens, Tesla would effectively be able to win the self-driving race.
News
Tesla sends clear message to Waymo with latest Austin Robotaxi move
It is the first expansion Tesla has made in Austin since the one on August 26. The company still operates in the Bay Area of California as well, referring to that program specifically as a “ride-hailing service.”
Tesla has sent a clear message to Waymo with its latest move to its Robotaxi program in Austin, Texas.
Tesla and Waymo are the two true leaders in autonomous ride-hailing to an extent. Tesla has what many believe is a lot of potential due to its prowess with the Supervised Full Self-Driving suite. It is also operating a driverless Robotaxi service in Austin with a “Safety Monitor” that sits in the passenger’s seat.
Tesla explains why Robotaxis now have safety monitors in the driver’s seat
The two companies have been competing heavily in the market since they both launched driverless ride-hailing services in Austin this year: Waymo’s in March and Tesla’s in June.
One of the main drivers in the competition between the two is service area size, or the geofence in which the cars will operate without a driver. In August, the two were tied with a service area of about 90 square miles (233.099 sq. km).
Tesla then expanded to about 170 square miles (440.298 sq. km) on August 26, dwarfing Waymo’s service area and expanding to freeways. Tesla’s freeway operation of the Robotaxi suite requires the Safety Monitor to be in the driver’s seat for safety reasons.
On Tuesday evening, Tesla made another move that sent a clear message to Waymo, as it expanded once again, this time to 243 square miles (629.367 sq. km).
This is according to Robotracker:
Here’s a comparison of Tesla’s geofence in Austin vs. Waymo’s
Tesla’s now spans 243 square miles, almost three times the size of Waymo’s at 89 square miles https://t.co/OCAHQDQhzb pic.twitter.com/wq5bHQXCp4
— TESLARATI (@Teslarati) October 29, 2025
It is the first expansion Tesla has made in Austin since the one on August 26. The company still operates in the Bay Area of California as well, referring to that program specifically as a “ride-hailing service.”
Yesterday, it expanded that service to the San Jose Mineta International Airport, something it has been working on for several months.
Waymo has its own set of distinct advantages over Tesla as well, as it operates in more cities and states than the EV maker. Waymo currently has its autonomous vehicle services in Phoenix, Arizona, San Francisco, Los Angeles, Austin, and Atlanta, Georgia.
Tesla plans to have half of the U.S. population with access to the Robotaxi platform by the end of the year.
Tesla Sweden faces new pressure in Sweden as Assa Abloy joins union action
Elon Musk: Tesla autonomous driving might spread faster than any tech
Tesla sends clear message to Waymo with latest Austin Robotaxi move
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