After years of negotiating with the Indian government over high import taxes on vehicles, a new report shows that Tesla plans to make significant investments in the country this year.
With Tesla and India still working out the finer details for its apparent partnership that would see a new Gigafactory come to the country, a new statement from a government official shows that the automaker will purchase billions of dollars worth of automotive components from the country.
Tesla plans to source between $1.7 and $1.9 billion in automotive components from India this year, according to a statement from the country’s Commerce and Industry Minister Piyush Goyal on Wednesday, according to Tech Crunch.
The information came during an auto event in New Delhi, and the purchases could nearly double the roughly $1 billion in auto parts Tesla purchased from India in 2022.
“We’ll start enjoying the fruits of new technologies, innovation, and R&D coming into India,” Goyal said at the event. “The auto component industry will not only then produce for a larger India demand, but with the same [components] models being sold in the rest of the world, we will also start exporting those components.”
When asked if the Indian government would consider offering incentives to lower import duties on vehicles, Goyal said the country would consider coming out with a new policy, as detailed by Bloomberg.
Tesla benchmarks cars in India, but it’s not time to get excited quite yet
“This is a government that provides equal opportunities to everybody,” Goyal responded. “We will come out with a policy which will be in consultation with all stakeholders.”
The news comes after India has courted Tesla since at least 2021, recommending that the automaker set up an EV factory in the country. However, Tesla’s vehicles are not yet available in India, mainly due to import taxes of as much as 35 percent on automobiles. Last month, Tesla proposed lowering import taxes to 15 percent, though negotiations remain ongoing.
In a statement last year, Musk said that Tesla would not build a factory in India until the U.S. automaker could sell and service its vehicles in the country. He also hopes to test the Indian market by selling Tesla’s cars in the country before establishing a production facility there.
“In many cases, particularly, for example, in taxis, public transport in buses, we already see electric vehicles having become a very compulsive investment case,” Goyal added.
Tesla currently manufactures its vehicles at “Gigafactories” in Shanghai, China, outside of Berlin, Germany, and across two plants in the U.S., located in Fremont, California, and Austin, Texas.
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Tesla says its Texas lithium refinery is now operational and unlike anything in North America
Elon Musk separately described the site as both the most advanced and the largest lithium refinery in the United States.
Tesla has confirmed that its Texas lithium refinery is now operational, marking a major milestone for the company’s U.S. battery supply chain. In a newly released video, Tesla staff detailed how the facility converts raw spodumene ore directly into battery-grade lithium hydroxide, making it the first refinery of its kind in North America.
Elon Musk separately described the site as both the most advanced and the largest lithium refinery in the United States.
A first-of-its-kind lithium refining process
In the video, Tesla staff at the Texas lithium refinery near Corpus Christi explained that the facility processes spodumene, a lithium-rich hard-rock ore, directly into battery-grade lithium hydroxide on site. The approach bypasses intermediate refining steps commonly used elsewhere in the industry.
According to the staff, spodumene is processed through kilns and cooling systems before undergoing alkaline leaching, purification, and crystallization. The resulting lithium hydroxide is suitable for use in batteries for energy storage and electric vehicles. Tesla employees noted that the process is simpler and less expensive than traditional refining methods.
Staff at the facility added that the process eliminates hazardous byproducts typically associated with lithium refining. “Our process is more sustainable than traditional methods and eliminates hazardous byproducts, and instead produces a co-product named anhydrite, used in concrete mixes,” an employee noted.
Musk calls the facility the largest lithium refinery in America
The refinery’s development timeline has been very impressive. The project moved from breaking ground in 2023 to integrated plant startup in 2025 by running feasibility studies, design, and construction in parallel. This compressed schedule enabled the fastest time-to-market for a refinery using this type of technology. This 2026, the facility has become operational.
Elon Musk echoed the significance of the project in posts on X, stating that “the largest Lithium refinery in America is now operational.” In a separate comment, Musk described the site as “the most advanced lithium refinery in the world” and emphasized that the facility is “very clean.”
By bringing large-scale lithium hydroxide production online in Texas, Tesla is positioning itself to reduce reliance on foreign refining capacity while supporting its growth in battery and vehicle production. The refinery also complements Tesla’s nascent domestic battery manufacturing efforts, which could very well be a difference maker in the market.
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Tesla Optimus V3 gets early third-party feedback, and it’s eye-opening
Jason Calacanis’ remarks, which were shared during a discussion at CES 2026, offered one of the first third-party impressions of the yet-to-be-unveiled robot
Angel investor and entrepreneur Jason Calacanis shared some insights after he got an early look at Tesla’s upcoming Optimus V3. His remarks, which were shared during a discussion at CES 2026, offered one of the first third-party impressions of the yet-to-be-unveiled robot.
Calacanis’ comments were shared publicly on X, and they were quite noteworthy.
The angel investor stated that he visited Tesla’s Optimus lab on a Sunday morning and observed that the place was buzzing with energy. The investor then shared a rare, shocking insight. As per Calacanis, Optimus V3 will be so revolutionary that people will probably not even remember that Tesla used to make cars in the future.
“I don’t want to name drop, but two Sundays ago, I went to Tesla with Elon and I went and visited the Optimus lab. There were a large number of people working on a Sunday at 10 a.m. and I saw Optimus 3. I can tell you now, nobody will remember that Tesla ever made a car,” he noted.
The angel investor also reiterated the primary advantage of Optimus, and how it could effectively change the world.
“They will only remember the Optimus and that he is going to make a billion of those, and it is going to be the most transformative technology product ever made in the history of humanity, because what LLMs are gonna enable those products to do is understand the world and then do things in the world that we don’t want to do. I believe there will be a 1:1 ratio of humans to Optimus, and I think he’s already won,” he said.
While Calacanis’ comments were clearly opinion-driven, they stood out as among the first from a non-Tesla employee about Optimus V3. Considering his reaction to the humanoid robot, perhaps Elon Musk’s predictions for Optimus V3 might not be too far-fetched at all.
Tesla has been careful with its public messaging around Optimus V3’s development stage. Musk has previously stated on X that Optimus V3 has not yet been revealed publicly, clarifying that images and videos of the robot online still show Optimus V2 and V2.5, not the next-generation unit. As for Calacanis’ recent comments, however, Musk responded with a simple “Probably true” in a post on X.
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Tesla taps Samsung for 5G modems amid plans of Robotaxi ramp: report
The move signals Tesla’s growing focus on supply-chain diversification and next-generation communications as it prepares to scale its autonomous driving and robotaxi operations.
A report from South Korea has suggested that Samsung Electronics is set to begin supplying 5G automotive modems to Tesla. If accurate, this would mark a major expansion of the two companies’ partnership beyond AI chips and into vehicle connectivity.
The move signals Tesla’s growing focus on supply-chain diversification and next-generation communications as it prepares to scale its autonomous driving and Robotaxi operations.
Samsung’s 5G modem
As per industry sources cited by TheElec, Samsung’s System LSI division has completed development of a dedicated automotive-grade 5G modem for Tesla. The 5G modem is reportedly in its testing phase. Initial supply is expected to begin in the first half of this year, with the first deployments planned for Tesla’s Robotaxi fleet in Texas. A wider rollout to consumer vehicles is expected to follow.
Development of the modem began in early 2024 and it required a separate engineering process from Samsung’s smartphone modems. Automotive modems must meet stricter durability standards, including resistance to extreme temperatures and vibration, along with reliability over a service life exceeding 10 years. Samsung will handle chip design internally, while a partner company would reportedly manage module integration.
The deal represents the first time Samsung has supplied Tesla with a 5G vehicle modem. Tesla has historically relied on Qualcomm for automotive connectivity, but the new agreement suggests that the electric vehicle maker may be putting in some serious effort into diversifying its suppliers as connectivity becomes more critical to autonomous driving.
Deepening Tesla–Samsung ties
The modem supply builds on a rapidly expanding relationship between the two companies. Tesla previously selected Samsung’s foundry business to manufacture its next-generation AI6 chips, a deal valued at more than 22.7 trillion won and announced in mid-2025. Together, the AI chip and 5G modem agreements position Samsung as a key semiconductor partner for Tesla’s future vehicle platforms.
Industry observers have stated that the collaboration aligns with Tesla’s broader effort to reduce reliance on Chinese and Taiwanese suppliers. Geopolitical risk and long-term supply stability are believed to be driving the shift in no small part, particularly as Tesla prepares for large-scale Robotaxi deployment.
Stable, high-speed connectivity is essential for Tesla’s Full Self-Driving system, supporting real-time mapping, fleet management, and continuous software updates. By pairing in-vehicle AI computing with a new 5G modem supplier, Tesla appears to be tightening control over both its hardware stack and its global supply chain.
Tesla says its Texas lithium refinery is now operational and unlike anything in North America
Tesla Optimus V3 gets early third-party feedback, and it’s eye-opening
