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Tesla’s Elon Musk to meet with India’s Prime Minister to discuss duty reductions

Tesla CEO Elon Musk with India Prime Minister Narendra Modi (Photo: Narendra Modi/Twitter)

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Tesla CEO Elon Musk is set to meet with Indian Prime Minister Narendra Modi to discuss import duty reductions. According to new reports, Tesla is once again urging Indian government officials to consider a rollback on import duties, which has prevented the electric automaker from selling imported vehicles in the country.

For several years, Tesla has attempted to enter India with its vehicles. However, heavy import duties put into place by Indian government officials favor domestic manufacturing and hinder companies that are based outside of the country from entering the market. This has been Tesla’s main bottleneck in entering India, as its cars are essentially double the price when they are subjected to these import taxes.

elon musk modi

Musk and Modi in 2015

Tesla is working with Indian government officials to figure out a plan to roll back the duties, and some politicians have supported the idea. However, Prime Minister Modi will have the ultimate say, and reports from Reuters say that Tesla has put in a request for CEO Elon Musk to meet with him. Three sources confirmed this, the report said.

The meeting could bring some closure and support to the idea of helping electric vehicle companies enter the Indian market. Initially, Tesla was making significant momentum in entering the market. Still, wishes from both sides, Tesla to test demand with imports and India wanting Tesla to commit to a production facility in the country, were unable to be met.

It appears the most significant issue will be giving other automakers the same treatment that Tesla will receive. Several months ago, some officials noted that company-specific incentives are not available for use, and now that is being solidified, according to new statements made by other officials. One source close to the government official’s thinking process said, “If Tesla was the only EV maker, decreasing duties would have worked. But there are others.”

It does not seem likely that Tesla will budge from testing vehicle demand in India with imports first. A large-scale investment into a domestic Gigafactory will be entirely too risky as the company continues to expand its manufacturing footprint. Additionally, electric vehicles are not a popular form of automobile in India. Statistics show that only 5,000 of the 2.4 million cars sold in India last year were electric.

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It seems that terms will have to be met between Tesla and Prime Minister Modi, and hopefully, a meeting with Musk will bring clarity to the situation.

Don’t hesitate to contact us with tips! Email us at tips@teslarati.com, or you can email me directly at joey@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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Tesla is thriving in Japan and outpacing homegrown EVs

Imports, which include vehicles from Tesla and BYD, now claim about 75% of overall EV sales in the country.

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(Credit: Tesla China)

Tesla is seeing robust sales in Japan. This was hinted at in data from the Japan Automobile Importers Association’s “others” category, which indicated a 56% yearly increase to 2,120 units in Q1 2025.

Tesla constitutes most of the vehicles in the Japan Automobile Importers Association’s “others” category, as noted in a Nikkei Asia report.

Japan’s Tesla Boom

Car sales by “others” in Japan soared 89% to 1,249 units in March, a monthly high, Nikkei noted. Fueling this surge in vehicle demand seemed to be the rollout of the new Model Y, as well as incentives like a five-year free Supercharging offer for previous-generation Model Y units. 

Japan’s overall electric vehicle market, however, shrank 33% to 59,736 units in 2024, comprising under 2% of total auto sales, the lowest among major economies. Imports, which include Tesla and BYD, now claim about 75% of overall EV sales in the country.

Weak Local Competition

One of the reasons behind Tesla’s surge in Japan could be the subpar EVs offered by Japanese automakers. So far, only eight models are available from homegrown automakers, and none could really hold a candle to vehicles like the new Model Y in terms of features and performance.

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This was highlighted by the Nissan Leaf, which saw a 32% sales drop to 1,133 units, and the Toyota bZ4X, which saw a 76% drop in sales to just 85 units in the first quarter. Combined, Japanese brands sold a total of 2,063 EVs, less than Tesla’s estimated figures for the quarter.

Yoshiaki Kawano, an analyst at S&P Global, noted that the weak EVs from Japan’s homegrown automakers result in consumers opting for imported vehicles like Teslas. “There are few homegrown EV options, so in some cases people who want to buy EVs reluctantly choose imports,” Kawano stated.

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xAI poised for funding surge as Musk seeks “proper value” for AI startup: report

The report was initially shared by CNBC’s David Faber during a segment on the Faber Report.

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Credit: xAI/X

During a recent investor call, Elon Musk reportedly hinted at a major valuation adjustment for his artificial intelligence startup, with the Tesla and SpaceX CEO stating that he was looking to put a “proper value” on xAI.

The report was initially shared by CNBC’s David Faber during a segment on the Faber Report.

Investor Call Sparks Speculation

Citing sources who were reportedly involved in the call, Faber noted that while Musk did not specifically state that he was looking to initiate another funding round, his comments about a “proper valuation” for xAI were interpreted by Faber’s sources that xAI may be setting the stage for a notable capital raise in the near future.

“Let me give you some takeaways from the call itself. It was with a number of the companies, the investors in xAI going over a number of important things, that included the closing of the X transaction… Remember, xAI and X are now one company valuing X at $33 billion going in. xAI had a value of as much as $80 billion.

“What I’ve heard is the company is setting up for another capital raise of great significance… But on the call, Musk is quoted as having said, ‘We’re going to put a proper value on the company in reference to xAI,’ and people took that to mean, and again this is speculation, that they will have a large raise,” Faber stated

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xAI’s Growth and Ambitions

Launched in July 2023, xAI introduced its Grok chatbot to challenge Anthropic’s Claude and OpenAI’s ChatGPT. In March, Musk merged xAI with X. “xAI and X’s futures are intertwined,” Musk wrote on X. “Today, we officially take the step to combine the data, models, compute, distribution and talent.” 

The merger leverages X’s data to train Grok, boosting xAI’s competitive edge. xAI has also made a lot of headway in the artificial intelligence space, thanks in part to its speed, which allowed it to set up Colossus, a supercomputer cluster comprised of 100,000 GPUs, in just 122 days. Colossus has since been expanded to 200,000 GPUs, and plans are underway to expand the supercomputer even further.

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Investor's Corner

Tesla (TSLA) Q1 2025 earnings: What to expect

Tesla stock reached as high as $488.54 per share in 2024, though it is trading at around $240 per share as of writing.

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Credit: Tesla Asia/X

Tesla (NASDAQ:TSLA) is expected to release its first quarter 2025 results after markets close today, April 22, 2025.

At 4:30 p.m. Central Time / 5:30 p.m. Eastern Time, executives such as CEO Elon Musk will also be holding a Company Update and the Q1 2025 earnings call.

Tesla Q1 Deliveries and Production

Tesla missed estimates in the first quarter, with the company delivering a total of 336,681 vehicles worldwide. A total of 362,615 vehicles were also produced during this period.

While the delivery results of Tesla’s electric vehicle business were subpar in Q1 2025, the company’s energy division exhibited strong performance during the quarter, deploying a total of 10.4 GWh worth of energy storage products.

Earnings Estimates

As noted in a Forbes report, expectations are high that Tesla will report a gain of $0.35/share on $21.85 billion in revenue. Whisper numbers, however, reportedly suggest that the electric vehicle maker will only post a gain of $0.31 per share.

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Analysts polled by the FactSet, however, expect Tesla to see an EPS of $0.41 per share on revenues of $21.27 billion, as noted in an Investors’ Business Daily report.

Tesla Stock So Far

Tesla stock reached as high as $488.54 per share in 2024, though it is trading at around $240 per share as of writing. Tesla stock has been naturally volatile, however, so it is prone to notable moves depending on its Q1 earnings.

If the numbers are good, Tesla stock could easily gap up, but if they are disappointing, it would not be surprising if TSLA shares gap down.

FSD, New Vehicle Updates

Tesla is expected to launch a dedicated robotaxi service this June in Austin, Texas. The company has also been hinting at more affordable models that will be launched in the first half of 2025. Expectations are high that CEO Elon Musk will share some updates on these projects, particularly the rollout of Tesla’s FSD Unsupervised system.

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