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Tesla needs to commit to Gigafactory India for reduced import duties: officials

Credit: Tesla

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Tesla is set to possibly receive a reduction in India’s import duties under the condition that it plans to manufacture cars in the country, government officials said.

For years, Tesla has attempted to enter India as a domestic carmaker to supply its electric vehicles to potential customers in the Indian market. Upon the request of the company’s fans, CEO Elon Musk stated in late 2020 that the company would begin making an entrance. It was just unclear how.

Tesla’s eventual emergence into India as a car manufacturer and sales entity has been a tumultuous road in 2021. At the beginning of the year, Tesla applied for and received two business licenses: one as a manufacturer and one for sales. However, despite receiving permission to build and sell Tesla’s popular electric cars in India, Musk was not convinced that the automaker would be successful to the point that would warrant the company to build a new manufacturing facility in India. As a result, Musk stated that he would be more comfortable testing the waters of demand by importing the company’s four all-electric models to India. If things went well, a Gigafactory would be built.

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

This brought Tesla’s executives to request import duty reductions for Tesla and other EV manufacturers in mid-July. The request cited a more appropriate import duty rate of forty percent, more reasonable than the sixty percent tax that applies to cars under $40,000 and the one hundred percent penalty applied to cars over that threshold. The request didn’t appeal to country politicians, who have held their priorities on local, domestic manufacturing. Foreign companies would have to pay to play in India, including Tesla.

Indian officials said:

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“The government has made its stance against company-specific incentives clear. This also applies for one particular company requesting industrywide changes to existing policy. Over the past four years, multiple demands were made by a large US-based firm to open up the market at lower import duties as well. Now, they locally produce in India and are ramping up capacity.”

Now, high-ranking Indian government officials are reconsidering Tesla’s request, stating that the country could lower import duties if Tesla commits to manufacturing vehicles in a facility that it will build in India.

“We will be open to consider, especially if they will set up a manufacturing place here,” an official told India Today.

The official added that this would not apply to Tesla specifically but to any foreign EV company that wanted to receive reduced import duties on its vehicles.

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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 enters two new markets on two different continents in one week

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Tesla entered two new markets this week by advancing its presence in Latvia (Europe) and officially launching operations in Uruguay (South America), marking a rapid dual-continent expansion.

These moves underscore the company’s strategy to tap into emerging EV markets with supportive policies, renewable energy grids, and growing demand for sustainable transport.

Latvia: Strengthening the Baltic Footprint

In Latvia, Tesla has built on its earlier registration of Tesla Latvia SIA in late 2025 with recent steps toward full operations, including job postings for a service center and representation in Riga. This aligns with broader Baltic expansion following Lithuania’s model of pop-up stores and service centers.

EV penetration in Latvia stands at around 7 percent for BEVs in new passenger car registrations. 2025 data showed 1,602 BEVs out of about 22,500 total, or 7.1 percent, with combined plug-ins nearing 19 percent. Growth has been steady but below the European average, supported by government subsidies and infrastructure development. Tesla models like the Model 3 lead local EV registrations.

Vehicles for the Latvian market will likely be sourced from Gigafactory Berlin or Gigafactory Shanghai. Charging infrastructure is robust for the region as well, with over 400- 2,000 public points, with Tesla Superchargers in Riga, Jūrmala, and along Via Baltica routes offering up to 250 kW.

Uruguay: Third South American Country

Tesla teased its Uruguay arrival with “Estamos llegando,” or, “We are arriving,” on social media, followed by an official presentation scheduled for mid-July.

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The company established Tesla Uruguay SAS, homologated Model 3 and Model Y (three versions each), and appointed local leadership. This makes Uruguay Tesla’s third official South American market after Chile and Colombia.

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Uruguay boasts one of Latin America’s highest EV penetrations, with battery-electric vehicles exceeding 20 percent market share recently, driven by tax incentives, high fuel prices, and a nearly 95-100 percent renewable electricity grid. Hundreds of Teslas already operate via grey imports, but official sales bring warranties, service, and support.

Vehicles will be imported from Gigafactory Shanghai, enabling competitive pricing for Model 3 and Model Y. Charging plans include Supercharger development alongside existing infrastructure, leveraging the country’s green energy advantage for affordable operation.

Tesla Superchargers follow Model 3 and Model Y to South American country

Tesla’s Dual Continent Expansion

Tesla’s simultaneous push into Latvia and Uruguay demonstrates efficient scaling: prioritizing service and infrastructure first, then direct sales in high-potential niches. In Europe, it fills Baltic gaps; in Latin America, it counters Chinese dominance while leveraging renewables.

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This dual move signals Tesla’s ambition to accelerate global EV adoption amid varying regional paces. By addressing local needs, like subsidies in Latvia or incentives and green grids in Uruguay, Tesla not only boosts volumes but advances its mission of sustainable energy.

For investors and consumers, it highlights resilience and opportunity in diverse markets, potentially paving the way for further growth in underserved regions. With strong fundamentals in both, these entries could yield long-term gains as EV transitions mature worldwide.

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SpaceX announces new Starship 13 test flight target date

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SpaceX Starship V3 flight 12
SpaceX Starship V3 flight 12 (Credit: SpaceX)

SpaceX has announced a new target date for the thirteenth test flight of Starship: Monday, July 20, with the launch window opening at 6:45 p.m ET/5:45 p.m. CT.

This is the first rescheduling attempt of Starship’s 13th test flight. It was set to launch last night, but SpaceX scrubbed the launch attempt.

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CEO Elon Musk revealed that some of the engines on Starship did not start, which automatically triggers a launch abort. Two of the Raptor engines will be removed and replaced.

SpaceX officially announced the new launch window this morning.

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Starship’s 13th test launch comes with a few new objectives, but SpaceX does not plan to attempt a catch of the booster, which it has done several times in the past.

For Starship’s Upper Stage, there are some adjustments to ensure engine reusability that will be assessed during the ascent, and 20 operational Starlink V3 satellites are also set to make their way into space. SpaceX also plans to attempt an in-space relight of a single Raptor engine, which is a critical demonstration for future orbital deorbit, refueling, and deep space maneuvers.

Ultimately, it will splash down in the Indian Ocean.

The continuous tests help SpaceX advance the Starship program toward eventual full reusability, operational Starlink V3 deployment, and future missions, which include NASA’s Artemis program.

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SpaceX Starship Flight 13 aborted at Zero and Musk just told us what broke

Four Raptor engines failed to ignite at T-zero, forcing SpaceX to scrub Starship Flight 13 Thursday.

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SpaceX scrubbed the Starship Flight 13 launch attempt Thursday evening at the last possible moment, after four of the Super Heavy booster’s 33 Raptor 3 engines failed to ignite during the startup sequence. The 90-minute window had opened at 6:45 p.m. EDT from Starbase in Boca Chica, Texas, and the countdown had proceeded without issue all day, with more than 11.5 million pounds of liquid methane and liquid oxygen being fully loaded into the rocket before the automated abort triggered. SpaceX’s launch directors posted on X, “Standing down from today’s flight test attempt,” and shut down the livestream shortly after.

Musk confirmed the root cause within hours. “Some of the engines didn’t start, triggering an automatic launch abort,” he wrote on X. “To be confident of a good flight, 2 Raptors will be removed and replaced. Most probable launch timing is early next week.” SpaceX engineers began draining propellant tanks immediately and Booster 20 was rolled back to its hangar for inspection.

SpaceX comes with a slew of changes for Starship Flight 13

 

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The timing adds a layer of significance that did not exist during any of the previous 12 Starship flights. This is the first time SpaceX has attempted to launch Starship since the company made its stock market debut in June, listing under ticker SPCX at $135 per share. Public investors are now watching every Starship outcome in real time, and a last-second abort carries more visibility than it would have six months ago.

Flight 13 was designed to be one of the most consequential tests in the program’s history. It was set to carry 20 Starlink V3 satellites, the first operational payload Starship has ever attempted to deploy. Six of those satellites carried external cameras to photograph Starship’s heat shield from the outside during flight, which would act as a self-inspection approach SpaceX has never attempted before. The mission also needed to complete a Raptor engine relight in space, a step SpaceX skipped on Flight 12 in May after losing an engine during ascent. That Flight 12 booster also flipped 90 degrees off course during its boostback burn when five engines failed to reignite.

SpaceX has not announced an official next launch date. Musk’s “early next week” window points to July 21 or 22 at the earliest, pending the engine swap and a return to the pad.

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