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Tesla bails on crucial piece of India production, aims to rely on imports

Tesla is not keen on establishing an entire production facility in India, and will instead focus on importing.

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Credit: Narendra Modi | Twitter

Tesla is bailing on a crucial piece of the puzzle that would likely enable the production of its vehicles in India, and will instead rely on imports, a bold strategy in the broader scheme, as the country has prioritized local manufacturing in an effort to bolster its economy.

The automaker has dragged its feet to commit to a localized production strategy in India, something that seemed to be the only pathway to a mass market presence in what is the most populous country in the world.

However, Tesla has evidently made a decision on what its plans for the market will be. It seems apparent that it still wants to sell vehicles in India and establish a presence there, but it will not do it in what many would consider a more traditional sense: building vehicles domestically. This is something the company has sparred with the Indian government on for several years.

Now, it’s made up its mind.

During a press conference earlier today, India’s Heavy Industry Minister, Shri Kumaraswamy, confirmed Tesla’s plans for how it will penetrate the massive Indian market, and it will not be doing so through domestic manufacturing:

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Kumaraswamy indicated that Tesla has no interest in building cars in India, but it wants to establish some presence there, especially with showrooms, allowing citizens to see and drive the cars they could buy from the company.

The move comes as India has made major progress in reducing the import duties that have frightened many automakers from doing business as importers. India’s massive import duties on vehicles built in other countries doubled prices, which is a significant reason for Tesla’s delay in entering the market.

India is considering a reduction to just 10 percent from 100 percent, which would be significant for companies like Tesla, which are doing whatever they can to enter the market without feeling the impact of the duties.

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Electric vehicles made up just 2.5 percent of sales in 2024. There were 4.3 million vehicle purchases in India last year.

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 owners across the globe prepare for Robotaxi launch with this neat customization

Tesla will eventually have Robotaxis worldwide. Some owners are already preparing.

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Credit: @HanChulYong | X

Tesla owners are already preparing for the company’s launch of the Robotaxi platform with a new, neat customization that is appearing around the world.

On Tuesday, the first Tesla Robotaxi test mule was spotted in Austin, where the company will launch the first driverless rides of this ride-hailing service. At first, it will be a limited rollout, reserved for a select few. CEO Elon Musk said public rides could occur as soon as June 22.

First Tesla driverless robotaxi spotted in the wild in Austin, TX

However, the Tesla Robotaxi platform is not one that will be confined to cities and geofenced to certain areas.

Eventually, Tesla will gain enough confidence to roll the Full Self-Driving software straight to every car in the customer fleet that paid for it. Owners will be able to generate income for themselves while they sleep, as the cars will operate as ride-hailing vehicles for people to use for transportation.

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In an effort to prepare for the launch of Robotaxi, Tesla owners across the globe are installing Tesla’s ‘Robotaxi’ word art on their cars.

Here’s one in South Korea:

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Here’s another in the U.S.:

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Obviously, this is more of a symbol of support for the Robotaxi launch, but many owners are recognizing that Tesla’s Full Self-Driving software will extend to them the ability to use their personal cars as ride-hailing vehicles, becoming a part of the global fleet of self-driving chauffeurs.

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Tesla sues former Optimus engineer for stealing trade secrets

Tesla is suing a former engineer who worked on Optimus after he left and immediately started a robotics company that achieved quick development of a hand.

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Credit: Elon Musk | X

Tesla is suing former Optimus engineer Jay Li in federal court after accusing him of stealing trade secrets and using them to enable a startup he founded after he left.

Li is accused of stealing confidential files and using them to help get his company, “Proception,” off to a rocking start. Tesla says the files Li took helped his new startup “shortcut the typical development process” for robot hands, something that took Tesla years to develop and evolve.

The company said in the complaint (via Reuters):

“Through Li’s pilfering, Defendant Proception purportedly achieved in a matter of months what it has taken Tesla over four years, hundreds of employees, and billions of dollars to achieve.”

Li was an employee at Tesla for several years, working on the Optimus sensor team from 2022 to 2024. The company says it utilized and devoted “extraordinary resources” to the development of Optimus, which has come a long way since its unveiling several years ago.

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Tesla Optimus to receive hands with 22 degrees of freedom later this year

Li allegedly downloaded confidential files related to Optimus’ robotic hand movement research before departing the company. He did not work on the hands at the time. However, he left and swiftly started Proception, as the suit states the company was founded just six days after he left Tesla.

Proception was gloating about its ability to build robotic hands just five months after the company was founded. Tesla says the hands have “striking similarities” to its own design for Optimus.

The company is looking for monetary damages and a court order that would block Proception from misusing the secrets it accuses Li of taking.

This is not the first suit Tesla has filed over trade secrets and confidential information theft. Recently, it accused German-Canadian dual citizen Klaus Pflugbeil of stealing battery-related secrets. He was arrested and sentenced to two years in prison.

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Tesla is being represented by Josh Krevitt, Orin Snyder, and Angelique Kaounis of Gibson Dunn & Crutcher.

The case is Tesla Inc. v. Perception Inc., U.S. District Court for the Northern District of California, No. 5:25-cv-04963.

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Tesla teases new Model Y seating option potentially coming soon

Tesla appears to be ready to launch the new Model Y seating option in the coming weeks.

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Credit: Tesla

Tesla teased a new Model Y seating option earlier this week in a promotional email, potentially hinting that it could introduce an arrangement offered on the legacy version of the vehicle.

Back in 2021, Tesla started offering a seven-seat configuration of the Model Y, and there was a lot of speculation about its orientation and the space it would provide. The two additional seats were truly a tight fit for anyone, even kids, as the space for a third row was extremely limited in the Model Y.

Tesla Model Y third-row seats first impressions shared by EV owner

Eventually, Tesla started building the seven-seater with forward-facing seats and very tight legroom dimensions. It was beneficial for some, but many still considered the arrangement to be too confined for their needs.

The company confirmed earlier this year in an interview with Jay Leno that the car would get other configurations, including Rear-Wheel-Drive, which has already launched, a Performance trim, which has been spotted with bumper covers several times this year, and a seven-seat version:

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The new seven-seater could be coming soon as well, according to a recent email Tesla sent to customers and fans. In it, Tesla writes:

“Ready for anything with long range seating for up to seven and enough room for everyone’s gear.”

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Tesla did have a mysterious Model Y roaming around the Fremont Factory’s test track recently with covered bumpers and what appeared to be strange dimensions.

We thought it might be the compact, affordable model that is set to launch in the first half of the year, but now it seems that the car could have either been the Model Y seven-seater or the Model Y Performance configuration, as they are both expected soon.

We are interested to see if Tesla can squeak out a few more inches of legroom in the new seven-seater, but we’re not holding our breath. Nevertheless, the new Model Y came with quite a few improvements, including suspension changes, acoustic-lined glass for a better cabin experience, and a front and rear bumper redesign, among other things.

There is no doubt it will be a better car than the legacy version.

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