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Elon Musk, President Trump share interesting dialogue regarding Tesla Gigafactory India

Tesla factory in Tilburg, Netherlands. (Credit: Tesla)

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Tesla CEO Elon Musk and President Donald Trump shared an interesting dialogue regarding the automaker’s potential entry into the Indian market, which could require the construction of a new Gigafactory in the country.

For the past several years, Tesla and India have attempted to come to terms on an agreement that would see the EV maker bring its vehicles to the country permanently. There have been several sticking points in the negotiations, which have delayed Tesla’s plans.

Tesla has wanted to test demand by shipping vehicles from its Gigafactory Berlin plant in Germany to India.

This would not be an adequate way to assess whether India is an ideal market for Tesla because the country applies 100 percent import duties to imported vehicles, doubling the price of the car in question.

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India has agreed to reduce or even eliminate the import duties for Tesla under one condition: it commits to building a factory in the country. This would essentially eliminate the need for the demand test, though.

This is where Tesla and India have been held up. However, recent discussions between Musk and Prime Minister Narendra Modi have resulted in Tesla initiating hiring efforts for Sales and Service advisors in India.

But things got interesting during an interview with President Trump and Musk yesterday, especially in regards to Tesla’s potential plans to build a Gigafactory in India.

Tesla CEO Elon Musk to meet with Indian PM once again – Here’s why

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Musk and Trump both discussed the high import duties on imported vehicles in India, which Tesla will likely need to use a Gigafactory in the country to avoid.

President Trump seems more in tune with the idea of Tesla sending American vehicles to India and using a reciprocal tariff strategy to force the country to eliminate its duties.

The back-and-forth went like this:

Musk: The tariffs are like 100 percent import duty.

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President Trump: The tariffs are so high —

Musk: Yeah.

President Trump: — they don’t want to — now, if he [Musk] built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair. And I said, “you know what we do?” I told Prime Minister Modi yesterday — he was here. I said, “Here’s what you do. We’re going to do — be very fair with you.” They charge the highest tariffs in the world, just about.

Media: 36 percent?

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President Trump: Oh, much, much higher.

Musk: It’s 100 percent on — auto imports are 100 percent.

President Trump: Yeah, that’s peanuts. So much higher. And — and others, too. I said, “Here’s what we’re going to do: reciprocal. Whatever you charge, I’m charging.”

The interesting bit about President Trump stating that Tesla building a factory in India is “unfair to us. It’s very unfair” seems to be a point of potential disagreement between the two.

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It’s nothing that can’t be worked out, but it seems there could be a bargaining point between Musk, President Trump, and Modi.

Musk wants to get Tesla’s vehicles in India because it is such a large market and it could be a massive boost to the company’s annual delivery totals in the coming years. It has to be at the right price and at the right time.

Modi wants Tesla in India, too, but this will only happen if it can boost the economy. India has a very hellbent focus on domestic manufacturing through its “Make In India” campaign, which is why import duties are so high.

Trump wants Tesla to continue building vehicles in the U.S. to bolster his plans that would provide a resurgence to domestic manufacturing. He is fine with Tesla operating in India, but only if the U.S. sees a benefit, and not Tesla exclusively.

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This will likely prolong what seemed to be an almost guaranteed deal between Tesla and India.

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Please email me with questions and comments at joey@teslarati.com. I’d love to chat! You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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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Elon Musk

Elon Musk: Tesla could be first to build AGI in humanoid form

Musk’s statement was shared in a post on social media platform X.  

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Credit: Tesla

Elon Musk predicted that Tesla could become one of the developers of Artificial General Intelligence (AGI) in humanoid form. Musk’s statement was shared in a post on social media platform X.  

In his post, Musk stated that “Tesla will be one of the companies to make AGI and probably the first to make it in humanoid/atom-shaping form.”

The comment comes as Tesla expands development of its Optimus humanoid robot.

During Tesla’s Q4 earnings report, Elon Musk stated that production of the Model S and Model X would be phased out at its Fremont, California, facility. The vehicles’ production line will then be converted to a pilot line for Optimus. Tesla is looking to produce 1 million units of the humanoid robots annually to start.

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Musk has previously stated that Optimus could eventually function as a von Neumann probe. The concept, proposed by mathematician John von Neumann, describes a machine capable of replicating itself using planetary resources and sending those replicas to other worlds.

Optimus would likely only be able to achieve this potential if it manages to achieve Artificial General Intelligence.

Other leaders in the AI sector have also expressed strong expectations about AGI’s potential. Demis Hassabis, CEO of Google DeepMind, recently spoke about the technology at the India AI Impact Summit 2026, as noted in a Benzinga report.

“It’s going to be something like ten times the impact of the Industrial Revolution, but happening at ten times the speed,” Hassabis said.

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Elon Musk’s recent comments about Tesla producing a product with AGI could hint at further collaboration among his companies. So far, Tesla is actively pursuing autonomous driving, but it is xAI that is pursuing AGI with its Grok program.

Considering that Elon Musk mentioned a Tesla humanoid product with AGI, it appears that an Optimus robot running xAI’s AI models could become a reality.

xAI had recently merged with SpaceX, though reports suggest that Elon Musk is also considering an even bigger merger for all his companies, including Tesla.

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Tesla ramps Cybercab test manufacturing ahead of mass production

Tesla still has plans for volume production, which remains between four and eight weeks away, aligning with Musk’s statements that early ramps would be deliberately measured given the Cybercab’s novel architecture and full reliance on Tesla’s vision-based Full Self-Driving technology.

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Credit: Joe Tegtmeyer | X

Tesla is seemingly ramping Cybercab test manufacturing ahead of mass production, which is scheduled to begin next month, the company said.

At Tesla’s Gigafactory Texas, production of the Cybercab, the company’s groundbreaking purpose-built Robotaxi vehicle, is accelerating markedly. Drone footage from Joe Tegtmeyer captured striking aerial footage today, revealing what appears to be the largest public sighting of Cyebrcabs to date.

A total of 25 units were observed by Tegtmeyer across the Gigafactory Texas property, marking a clear step-up in testing and validation activities as Tesla prepares for a broader output.

Tesla Cybercab production begins: The end of car ownership as we know it?

In the footage, 14 metallic gold Cybercabs were parked in a tight formation outside the factory exit, showcasing their sleek, autonomous-only design with no steering wheels, pedals, or traditional controls. Another 9 units sat at the crash testing facility, likely undergoing structural and safety validations, while two more appeared at the west end-of-line area for final checks.

Tegtmeyer noted additional Cybercabs driving around the complex, hinting at active movement and real-world testing beyond static parking.

This surge follows the first production Cybercab rolling off the line in mid-February 2026, several weeks ahead of the originally anticipated April start.

That milestone, celebrated by Tesla employees and confirmed by CEO Elon Musk, kicked off low-volume builds on the dedicated “unboxed” manufacturing line, a modular process designed to slash costs, reduce factory footprint, and enable faster assembly compared to conventional methods.

Industry observers interpret the jump to dozens of visible units in early March as evidence that Tesla has transitioned into higher-volume test manufacturing.

Tesla still has plans for volume production, which remains between four and eight weeks away, aligning with Musk’s statements that early ramps would be deliberately measured given the Cybercab’s novel architecture and full reliance on Tesla’s vision-based Full Self-Driving technology.

The Cybercab, envisioned as a sub-$30,000 autonomous two-seater for robotaxi fleets, represents Tesla’s bold pivot toward scalable autonomy and robotics.

Tesla fans and enthusiasts on X praised the imagery, with many expressing excitement over the visible progress toward deployment. While challenges remain, including software maturity, regulatory hurdles, and supply chain scaling, the increased factory activity underscores Tesla’s momentum in turning the Cybercab vision into reality.

As Giga Texas continues expanding and refining the manufacturing process of the Cybercab, the coming months will prove to be a pivotal time in determining how quickly this revolutionary vehicle reaches roads in the U.S. and internationally.

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SpaceX to launch Starlink V2 satellites on Starship starting 2027

The update was shared by SpaceX President Gwynne Shotwell and Starlink Vice President Mike Nicolls.

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Credit: SpaceX

SpaceX is looking to start launching its next-generation Starlink V2 satellites in mid-2027 using Starship.

The update was shared by SpaceX President Gwynne Shotwell and Starlink Vice President Mike Nicolls during remarks at Mobile World Congress (MWC) in Barcelona, Spain.

“With Starship, we’ll be able to deploy the constellation very quickly,” Nicolls stated. “Our goal is to deploy a constellation capable of providing global and contiguous coverage within six months, and that’s roughly 1,200 satellites.”

Nicolls added that once Starship is operational, it will be capable of launching approximately 50 of the larger, more powerful Starlink satellites at a time, as noted in a Bloomberg News report.

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The initial deployment of roughly 1,200 next-generation satellites is intended to establish global and contiguous coverage. After that phase, SpaceX plans to continue expanding the system to reach “truly global coverage, including the polar regions,” Nicolls said.

Currently, all Starlink satellites are launched on SpaceX’s Falcon 9 rocket. The next-generation fleet will rely on Starship, which remains in development following a series of test flights in 2025. SpaceX is targeting its next Starship test flight, featuring an upgraded version of the rocket, as soon as this month.

Starlink is currently the largest satellite network in orbit, with nearly 10,000 satellites deployed. Bloomberg Intelligence estimates the business could generate approximately $9 billion in revenue for SpaceX in 2026.

Nicolls also confirmed that SpaceX is rebranding its direct-to-cell service as Starlink Mobile.

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The service currently operates with 650 satellites capable of connecting directly to smartphones and has approximately 10 million monthly active users. SpaceX expects that figure to exceed 25 million monthly active users by the end of 2026.

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