Volkswagen has teamed up with Tesla in support of slashing import duties in India, the major barrier between automakers selling their vehicles in the market due to the high rates the country’s government has equipped to boost local manufacturing.
For the last few months, Tesla has made more progress toward entering India with its vehicles, hoping to increase sales in the fifth-largest automotive market globally. In 2021, Tesla has made more progress with the India entrance than ever before, receiving business licenses, registering itself as an entity with the ability to sell vehicles, and establishing a team of company executives to oversee the entire operation. It seemed that Tesla would finally enter the market, bringing clean and sustainable all-electric powertrains to the oil-savvy nation of India.
However, import taxes are a big hold up in the process currently. Cars with a price tag of $40,000 or less have a 60% import tax applied to them, while anything more than that number has a 100% duty, effectively doubling the price of the car. Tesla attempted to lobby with India’s government officials to reduce the import duties. Still, numerous members of the Parliament have declined to work with the automaker, as local manufacturing takes priority. Some government officials are concerned that it could take momentum away from domestic carmakers and auto parts suppliers. The deal must benefit India’s local entities.
This led to a bottleneck in Tesla’s potential entrance, as CEO Elon Musk stated he was unwilling to establish a manufacturing plant in India without testing demand. Demand would be measured through imports, and if sales figures in India were hefty enough that a production facility would be justified, Musk said that Tesla would build an assembly facility in the country. However, Tesla had pushback from politicians who said that individual companies could not receive incentives, but Tesla pushed for all EV makers to qualify for the reductions. Earlier this week, India’s officials announced there were talks to reduce duties to encourage non-domestic manufacturers to sell their products in the country.
Now, Volkswagen AG is getting involved and is pushing for lower import duties in India as well. The company is proposing reductions to as little as 25% for import duties, stating that the reduction would not pose a “big threat” to domestic companies but would still make imported vehicles more expensive than local options.
“The market for EVs has to be big enough for investments to come in, and for that, we shouldn’t be placing barriers,” Managing Director of Skoda Auto Volkswagen India Gurpratap Boparai said to Reuters.
Volkswagen AG has several electric vehicles out across its different brands, including Audi, and of course, its own VW brand with the ID.3, ID.4, and other models that are soon entering production. However, it is aiming for only its Volkswagen and Skoda brands to enter the market. This will not occur unless there is movement on import duties.
Attempts to decrease the duties have resulted in other manufacturers like Mercedes-Benz and Hyundai voicing support for the proposed cuts. However, local companies, like Tata Motors, are not encouraged by the proposals. Once again, the argument is local manufacturing should be prioritized. Boparai disagrees.
“I’m not at all saying that local manufacturing should not be encouraged … but duty of 60% and 100% is prohibitively high at this juncture,” he added.
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
Elon Musk confirms Tesla FSD V14.2 will see widespread rollout
Musk shared the news in a post on social media platform X.
Elon Musk has confirmed that Tesla will be implementing a wide rollout of Full Self-Driving (FSD) V14 with the system’s V14.2 update. Musk shared the news in a post on social media platform X.
FSD V14.1.2 earns strong praise from testers
Musk’s comment came as a response to Tesla owner and longtime FSD tester AI DRIVR, who noted that it might be time to release Full Self-Driving to the fleet because V14.1.2 has already become very refined.
“95% of the indecisive lane changes and braking have been fixed in FSD 14.1.2. I haven’t touched my steering wheel in two days. I think it’s time, Tesla AI,” the longtime FSD tester wrote.
AI DRIVR’s comment received quite a bit of support from fellow Tesla drivers, some of whom noted that the improvements that were implemented in V14.1.2 are substantial. Others also agreed that it’s time for FSD to see a wide release.
In his reply to the FSD tester, CEO Elon Musk noted that FSD V14’s wide release would happen with V14.2. “14.2 for widespread use,” Musk wrote in his reply.
Mad Max mode makes headlines
One of the key features that was introduced with FSD’s current iteration is Mad Max mode, which allows for higher speeds and more frequent lane changes than the previous “Hurry” mode. Videos and social media posts from FSD testers have shown the system deftly handling complex traffic, merging seamlessly, and maintaining an assertive but safe driving behavior with Mad Max mode engaged.
Tesla AI head Ashok Elluswamy recently noted in a post on X that Mad Max mode was built to handle congested daytime traffic, making it extremely useful for drivers who tend to find themselves in heavy roads during their daily commutes. With Musk now hinting that FSD V14.2 will go on wide release, it might only be a matter of time before the larger Tesla fleet gets to experience the notable improvements of FSD’s V14 update.
News
Multiple Tesla Cybercab units spotted at Giga Texas crash test facility
The vehicles were covered, but one could easily recognize the Cybercab’s sleek lines and compact size.
It appears that Tesla is ramping up its activities surrounding the development and likely initial production of the Cybercab at Giga Texas. This was, at least, hinted at in a recent drone flyover of the massive electric vehicle production facility in Austin.
Cybercab sightings fuel speculations
As observed by longtime Giga Texas drone operator Joe Tegtmeyer, Tesla had several covered Cybercab units outside the facility’s crash testing facility at the time of his recent flyover. The vehicles were covered, but one could easily recognize the Cybercab’s sleek lines and compact size. Tegtmeyer also observed during his flyover that production of the Model Y Standard seems to be hitting its pace.
The drone operator noted that the seven covered Cybercabs might be older prototypes being decommissioned or new units awaiting crash tests. Either scenario points to a ramp-up in Cybercab activity at Giga Texas, however. “In either case, this is another datapoint indicating production is getting closer to happening,” Tegtmeyer wrote on X, highlighting that the autonomous two-seaters were quite exciting to see.
Cybercab production targets
This latest sighting follows reports of renewed Cybercab appearances at both the Fremont Factory and Giga Texas. A test unit was recently spotted driving on Giga Texas’ South River Road. Another Cybercab, seen at Tesla’s Fremont Factory, appeared to be manually driven, suggesting that the vehicle’s current prototypes may still be produced with temporary steering controls.
The Tesla Cybercab is designed to be the company’s highest-volume vehicle, with CEO Elon Musk estimating that the autonomous two-seater should see an annual production rate of about 2 million units per year. To accomplish this, Tesla will be building the Cybercab using its “Unboxed” process, which should help the vehicle’s production line achieve outputs that are more akin to consumer electronics production lines.
Elon Musk
Teslas in the Boring Co. Vegas Loop are about to get a big change
Elon Musk has a big update for Teslas that operate within the Boring Company’s Vegas Loop.
Tesla vehicles operating in the Boring Company’s Vegas Loop are about to get a big change, CEO Elon Musk said.
In Las Vegas, the Boring Company operates the Vegas Loop, an underground tunnel system that uses Teslas to drop people off at various hotspots on the strip. It’s been active for a few years now and is expanding to other resorts, hotels, and destinations.
Currently, there are stops at three resorts: Westgate, the Encore, and Resorts World. However, there will eventually be “over 100 stations and span over 68 miles of tunnel,” the Vegas Loop website says.
The Loop utilizes Tesla Model 3 and Model Y vehicles to send passengers to their desired destinations. They are currently driven using the Full Self-Driving suite, but they also have safety drivers in each vehicle to ensure safety.
Tesla Cybertruck rides are crucial for Vegas Loop expansion to airport
Tesla and the Boring Company have been working to remove drivers from the vehicles used in the Loop, but now, it appears there is a set timeline to have them out, according to CEO Elon Musk:
The Tesla cars operating in The Boring Company tunnels under Las Vegas will be driverless in a month or two https://t.co/mX4nNrJui9
— Elon Musk (@elonmusk) October 18, 2025
Musk says the Boring Co. will no longer rely on safety drivers within the Teslas for operation. Instead, Tesla will look to remove the safety drivers from the cars within the next month or two, a similar timeline for what Musk believes the Robotaxi platform will look like in Austin.
In Texas, as Robotaxi continues to operate as it has since June, there are still safety monitors within the car who sit in the passenger’s seat. They are there to ensure a safe experience for riders.
When the route takes the vehicle on the highway, safety monitors move into the driver’s seat.
However, Tesla wants to be able to remove safety monitors from its vehicles in Austin by the end of the year, Musk has said recently.
In early September, Musk said that the safety monitors are “just there for the first few months to be extra safe.” He then added that there “should be no safety driver by end of year.”
The safety driver is just there for the first few months to be extra safe.
Should be no safety driver by end of year.
— Elon Musk (@elonmusk) September 4, 2025
Elon Musk confirms Tesla FSD V14.2 will see widespread rollout
Multiple Tesla Cybercab units spotted at Giga Texas crash test facility
Teslas in the Boring Co. Vegas Loop are about to get a big change
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