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Tesla may not sell Giga Shanghai-produced cars in India: Road Transport Minister

(Credit: @mat2ate7/Twitter)

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Indian Road Transport Minister Nitin Gadkari nailed the point that Tesla will not be able to export Giga Shanghai Model 3 and Model Y vehicles from China to India. It is the most recent development in Tesla’s road to sell and manufacture its vehicles in India, a process that has taken over four years to configure.

Gadkari has been in contact with Tesla officials for several days, he says. However, he has repeatedly told the company’s executives that cars sold in the Indian market must be manufactured there, and the government will not accept any imports from other countries. Tesla has established its Chinese production facility, known as Giga Shanghai, as somewhat of an export hub in 2021. It all began in January when the automaker went back on its word that it would not ship China-built cars to Europe to handle demand spikes.

The company sent 7,000 Model 3 units to other countries from China within the first two weeks of the New Year. Then, the Model Y started being shipped to Europe from Giga Shanghai just last month, as Tesla’s European Gigafactory, known as Giga Berlin, has not yet been completed. However, European demand for the Model Y convinced the automaker to abandon its non-export stance, and Shanghai has supported both the Chinese market and some parts of the European market for months.

Most importantly, Gadkari is in no way trying to make things more difficult for Tesla to enter the market. Instead, he is making it a fair playing field for both the automaker and the country, which ultimately both need to benefit from the potential partnership. Gadkari told Tesla that any of the company’s needs would be taken care of by the Indian Government, the automaker just needs to manufacture its vehicles domestically.

“I have told Tesla that don’t sell electric cars in India which your company has manufactured in China. You should manufacture electric cars in India, and also export cars from India,” Gadkari told Hindu Stan Times. “Whatever support you (Tesla) want, will be provided by our government.” Gadkari also stated that there are ongoing discussions concerning Tesla’s requested tax rollbacks on imports.

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Since India and Tesla have started to more seriously consider the advantages of building the world’s best electric cars in the country, there has been a hypothetical game of “Chicken” going on. Tesla was granted business licenses to sell and build electric cars in the region in the early parts of 2021, and it seemed that the expansive team of Tesla executives the company put together for India all but solidified that Elon Musk’s EV company would be present in the country in the coming months. However, Tesla wished to test demand for its cars through imports, a strategy that India’s politicians were not keen on, especially considering they are unwilling to move away from business practices that would favor manufacturing in other countries.

Tesla wants India’s government to consider lowering import taxes

Musk was not in favor of taking such a massive risk by building a production facility in India without knowing whether its vehicles would provide growth opportunities for the company. Tesla is riding a streak of eight consecutive profitable quarters, with its ninth expected to take place after the conclusion of Q3 2021. Financials, growth, and profitability are currently in the company’s best interest, of course. However, building a possibly $1 billion production plant in a market that it has never tested would essentially be a huge risk that could end up as a catastrophic failure.

It is only a safe business practice and strategy for Tesla to save potentially billions of dollars on a project that may not be successful. However, it is an advantage of Tesla’s to have such strong support from India’s government, especially as the company begins to expand into markets that are not necessarily EV hotspots.

Don’t hesitate to contact us with tips! Email us at tips@teslarati.com, or you can email me directly at joey@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla reveals it is using AI to make factories more sustainable: here’s how

Tesla is using AI in its Gigafactory Nevada factory to improve HVAC efficiency.

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Credit: Tesla

Tesla has revealed in its Extended Impact Report for 2024 that it is using Artificial Intelligence (AI) to enable its factories to be more sustainable. One example it used was its achievement of managing “the majority of the HVAC infrastructure at Gigafactory Nevada is now AI-controlled” last year.

In a commitment to becoming more efficient and making its production as eco-friendly as possible, Tesla has been working for years to find solutions to reduce energy consumption in its factories.

For example, in 2023, Tesla implemented optimization controls in the plastics and paint shops located at Gigafactory Texas, which increased the efficiency of natural gas consumption. Tesla plans to phase out natural gas use across its factories eventually, but for now, it prioritizes work to reduce emissions from that energy source specifically.

It also uses Hygrometric Control Logic for Air Handling Units at Giafactory Berlin, resulting in 17,000 MWh in energy savings each year. At Gigafactory Nevada, Tesla saves 9.5 GWh of energy through the use of N-Methylpyrrolidone refineries when extracting critical raw material.

Perhaps the most interesting way Tesla is conserving energy is through the use of AI at Gigafactory Nevada, as it describes its use of AI to reduce energy demand:

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“In 2023, AI Control for HVAC was expanded from Nevada and Texas to now include our Berlin-Brandenburg and Fremont factories. AI Control policy enables HVAC systems within each factory to work together to process sensor data, model factory dynamics, and apply control actions that safely minimize the energy required to support production. In 2024, this system achieved two milestones: the majority of HVAC infrastructure at Gigafactory Nevada is now AI-controlled, reducing fan and thermal energy demand; and the AI algorithm was extended to manage entire chiller plants, creating a closed-loop control system that optimizes both chilled water consumption and the energy required for its generation, all while maintaining factory conditions.”

Tesla utilizes AI Control “primarily on systems that heat or cool critical factory production spaces and equipment.” AI Control communicates with the preexisting standard control logic of each system, and any issues can be resolved by quickly reverting back to standard control. There were none in 2024.

Tesla says that it is utilizing AI to drive impact at its factories, and it has proven to be a valuable tool in reducing energy consumption at one of its facilities.

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Tesla analysts believe Musk and Trump feud will pass

Tesla CEO Elon Musk and U.S. President Donald Trump’s feud shall pass, several bulls say.

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The White House, Public domain, via Wikimedia Commons
President Donald J. Trump purchases a Tesla on the South Lawn, Tuesday, March 11, 2025. (Official White House Photo by Molly Riley)

Tesla analysts are breaking down the current feud between CEO Elon Musk and U.S. President Donald Trump, as the two continue to disagree on the “Big Beautiful Bill” and its impact on the country’s national debt.

Musk, who headed the Department of Government Efficiency (DOGE) under the Trump Administration, left his post in May. Soon thereafter, he and President Trump entered a very public and verbal disagreement, where things turned sour. They reconciled to an extent, and things seemed to be in the past.

However, the second disagreement between the two started on Monday, as Musk continued to push back on the “Big Beautiful Bill” that the Trump administration is attempting to sign into law. It would, by Musk’s estimation, increase spending and reverse the work DOGE did to trim the deficit.

President Trump has hinted that DOGE could be “the monster” that “eats Elon,” threatening to end the subsidies that SpaceX and Tesla receive. Musk has not been opposed to ending government subsidies for companies, including his own, as long as they are all abolished.

How Tesla could benefit from the ‘Big Beautiful Bill’ that axes EV subsidies

Despite this contentious back-and-forth between the two, analysts are sharing their opinions now, and a few of the more bullish Tesla observers are convinced that this feud will pass, Trump and Musk will resolve their differences as they have before, and things will return to normal.

ARK Invest’s Cathie Wood said this morning that the feud between Musk and Trump is another example of “this too shall pass:”

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Additionally, Wedbush’s Dan Ives, in a note to investors this morning, said that the situation “will settle:”

“We believe this situation will settle and at the end of the day Musk needs Trump and Trump needs Musk given the AI Arms Race going on between the US and China. The jabs between Musk and Trump will continue as the Budget rolls through Congress but Tesla investors want Musk to focus on driving Tesla and stop this political angle…which has turned into a life of its own in a roller coaster ride since the November elections.”

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Tesla shares are down about 5 percent at 3:10 p.m. on the East Coast.

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Tesla scrambles after Musk sidekick exit, CEO takes over sales

Tesla CEO Elon Musk is reportedly overseeing sales in North America and Europe, Bloomberg reports.

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Credit: Tesla

Tesla scrambled its executives around following the exit of CEO Elon Musk’s sidekick last week, Omead Afshar. Afshar was relieved of his duties as Head of Sales for both North America and Europe.

Bloomberg is reporting that Musk is now overseeing both regions for sales, according to sources familiar with the matter. Afshar left the company last week, likely due to slow sales in both markets, ending a seven-year term with the electric automaker.

Tesla’s Omead Afshar, known as Elon Musk’s right-hand man, leaves company: reports

Afshar was promoted to the role late last year as Musk was becoming more involved in the road to the White House with President Donald Trump.

Afshar, whose LinkedIn account stated he was working within the “Office of the CEO,” was known as Musk’s right-hand man for years.

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Additionally, Tom Zhu, currently the Senior Vice President of Automotive at Tesla, will oversee sales in Asia, according to the report.

It is a scramble by Tesla to get the company’s proven executives over the pain points the automaker has found halfway through the year. Sales are looking to be close to the 1.8 million vehicles the company delivered in both of the past two years.

Tesla is pivoting to pay more attention to the struggling automotive sales that it has felt over the past six months. Although it is still performing well and is the best-selling EV maker by a long way, it is struggling to find growth despite redesigning its vehicles and launching new tech and improvements within them.

The company is also looking to focus more on its deployment of autonomous tech, especially as it recently launched its Robotaxi platform in Austin just over a week ago.

Tesla officially launches Robotaxi service with no driver

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However, while this is the long-term catalyst for Tesla, sales still need some work, and it appears the company’s strategy is to put its biggest guns on its biggest problems.

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