Elon Musk
Elon Musk, President Trump share interesting dialogue regarding Tesla Gigafactory India
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.
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
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.
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?
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.
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.
This will likely prolong what seemed to be an almost guaranteed deal between Tesla and India.
Need accessories for your Tesla? Check out the Teslarati Marketplace:
- https://shop.teslarati.com/collections/tesla-cybertruck-accessories
- https://shop.teslarati.com/collections/tesla-model-y-accessories
- https://shop.teslarati.com/collections/tesla-model-3-accessories
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.
Elon Musk
SpaceX issues statement on Starship V3 Booster 18 anomaly
The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX has issued an initial statement about Starship Booster 18’s anomaly early Friday. The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX’s initial comment
As per SpaceX in a post on its official account on social media platform X, Booster 18 was undergoing gas system pressure tests when the anomaly happened. Despite the nature of the incident, the company emphasized that no propellant was loaded, no engines were installed, and personnel were kept at a safe distance from the booster, resulting in zero injuries.
“Booster 18 suffered an anomaly during gas system pressure testing that we were conducting in advance of structural proof testing. No propellant was on the vehicle, and engines were not yet installed. The teams need time to investigate before we are confident of the cause. No one was injured as we maintain a safe distance for personnel during this type of testing. The site remains clear and we are working plans to safely reenter the site,” SpaceX wrote in its post on X.
Incident and aftermath
Livestream footage from LabPadre showed Booster 18’s lower half crumpling around the liquid oxygen tank area at approximately 4:04 a.m. CT. Subsequent images posted by on-site observers revealed extensive deformation across the booster’s lower structure. Needless to say, spaceflight observers have noted that Booster 18 would likely be a complete loss due to its anomaly.
Booster 18 had rolled out only a day earlier and was one of the first vehicles in the Starship V3 program. The V3 series incorporates structural reinforcements and reliability upgrades intended to prepare Starship for rapid-reuse testing and eventual tower-catch operations. Elon Musk has been optimistic about Starship V3, previously noting on X that the spacecraft might be able to complete initial missions to Mars.
Elon Musk
SpaceX Starship Version 3 booster crumples in early testing
Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
SpaceX’s new Starship first-stage booster, Booster 18, suffered major damage early Friday during its first round of testing in Starbase, Texas, just one day after rolling out of the factory.
Based on videos of the incident, the lower section of the rocket booster appeared to crumple during a pressurization test. Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
Booster test failure
SpaceX began structural and propellant-system verification tests on Booster 18 Thursday night at the Massey’s Test Site, only a few miles from Starbase’s production facilities, as noted in an Ars Technica report. At 4:04 a.m. CT on Friday, a livestream from LabPadre Space captured the booster’s lower half experiencing a sudden destructive event around its liquid oxygen tank section. Post-incident images, shared on X by @StarshipGazer, showed notable deformation in the booster’s lower structure.
Neither SpaceX nor Elon Musk had commented as of Friday morning, but the vehicle’s condition suggests it is likely a complete loss. This is quite unfortunate, as Booster 18 is already part of the Starship V3 program, which includes design fixes and upgrades intended to improve reliability. While SpaceX maintains a rather rapid Starship production line in Starbase, Booster 18 was generally expected to validate the improvements implemented in the V3 program.
Tight deadlines
SpaceX needs Starship boosters and upper stages to begin demonstrating rapid reuse, tower catches, and early operational Starlink missions over the next two years. More critically, NASA’s Artemis program depends on an on-orbit refueling test in the second half of 2026, a requirement for the vehicle’s expected crewed lunar landing around 2028.
While SpaceX is known for diagnosing failures quickly and returning to testing at unmatched speed, losing the newest-generation booster at the very start of its campaign highlights the immense challenge involved in scaling Starship into a reliable, high-cadence launch system. SpaceX, however, is known for getting things done quickly, so it would not be a surprise if the company manages to figure out what happened to Booster 18 in the near future.
Elon Musk
Elon Musk’s xAI gains first access to Saudi supercluster with 600k Nvidia GPUs
The facility will deploy roughly 600,000 Nvidia GPUs, making it one of the world’s most notable superclusters.
A Saudi-backed developer is moving forward with one of the world’s largest AI data centers, and Elon Musk’s xAI will be its first customer. The project, unveiled at the U.S.–Saudi Investment Forum in Washington, D.C., is being built by Humain, a company supported by Saudi Arabia’s Public Investment Fund.
The facility will deploy roughly 600,000 Nvidia GPUs, making it one of the world’s most notable superclusters.
xAI secures priority access
Nvidia CEO Jensen Huang stated that the planned data center marks a major leap not just for the region but for the global AI ecosystem as a whole. Huang joked about the sheer capacity of the build, emphasizing how unusual it is for a startup to receive infrastructure of such magnitude. The facility is designed to deliver 500 megawatts of Nvidia GPU power, placing it among the world’s largest AI-focused installations, as noted in a Benzinga report.
“We worked together to get this company started and off the ground and just got an incredible customer with Elon. Could you imagine a startup company, approximately $0 billion in revenues, now going to build a data center for Elon? 500 megawatts is gigantic. This company is off the charts right away,” Huang said.
Global Chipmakers Join Multi-Vendor Buildout To Enhance Compute Diversity
While Nvidia GPUs serve as the backbone of the first phase, Humain is preparing a diversified hardware stack. AMD will supply its Instinct MI450 accelerators, which could draw up to 1 gigawatt of power by 2030 as deployments ramp. Qualcomm will also contribute AI200 and AI250 data center processors, accounting for an additional 200 megawatts of compute capacity. Cisco will support the networking and infrastructure layer, helping knit the multi-chip architecture together.
Apart from confirming that xAI will be the upcoming supercluster’s first customer, Musk also joked about the rapid scaling needed to train increasingly large AI models. He joked that a theoretical expansion one thousand times larger of the upcoming supercluster “would be 8 bazillion, trillion dollars,” highlighting the playful exaggeration he often brings to discussions around extreme compute demand.