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Tesla’s entry in India must benefit local auto part suppliers
Tesla’s ongoing saga with India’s government officials regarding the potential entrance of the electric car manufacturer into the country is drawing remarks from all sectors. This morning, it was reported that India-based auto suppliers and car part makers want Tesla’s entrance to benefit local suppliers. The only way that can be possible is if Tesla sets up a manufacturing unit in India, which the company is unable to commit to currently.
In July, CEO Elon Musk indicated that Tesla’s potential in India must be measured through importing vehicles before committing to building a massive production facility in the country. The issue with this strategy is that importing cars into India is an expensive process and requires the customer to pay hefty import duties that, in some cases, double the cost of the vehicle. Cars less than $40,000 are subjected to a 60% import tax, while anything more expensive gets a full 100% duty applied. This limits Tesla’s ability to import vehicles into the market because few are willing to pay these expensive fees.
Tesla has petitioned to reduce import duties for electric vehicles, but India’s government is unwilling to budge currently. Favoring domestic and local manufacturing efforts, the current government administration has said on numerous occasions that import duty percentages are unlikely to be changed because it heavily favors local manufacturing efforts.
Tesla wants India’s government to consider lowering import taxes
Auto part suppliers are taking the stance of the Indian government, as well. There is now a domestic debate of whether a reduction of import duties supports local manufacturing.
“We will always promote localization,” the Automotive Component Manufacturers Association (ACMA) president Deepak Jain said, according to Reuters. “We would welcome any foreign or domestic entry, capacity expansions on any vehicle segment as long as it promotes value addition and localization, which gives the opportunity for the component sector to flourish.”
What complicates this issue is that India is known for supporting oil. In a market where electric cars make up less than 1% of the total automotive market, there are questions of whether local companies would be able to fulfill Tesla and other electric automaker’s needs. Batteries are the biggest thing, electric motors being a high-ranking item on the list as well. This would likely require importing these parts to India for the short term.
Jain did say that ACMA is working with the government to see what elements of an EV can be manufactured locally. However, depleting vehicle sales, sliding due to the COVID-19 pandemic are affecting these suppliers. The lack of capital may require these companies to make sizable investments and could be detrimental to a business if they fail.
Tesla is not alone in the fight to reduce Indian import duties. Hyundai and Mercedes-Benz are also attempting to combat the excessive taxes to benefit from sales in the country. “To give confidence to carmakers, if India is able to liberalize the import tax, then companies like Mercedes can test the market and choose to manufacture EV models locally,” Mercedes-Benz India’s VP of Sales and Marketing Santosh Iyer said.
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Elon Musk
Tesla Megapack powers $1.1B AI data center project in Brazil
By integrating Tesla’s Megapack systems, the facility will function not only as a major power consumer but also as a grid-supporting asset.
Tesla’s Megapack battery systems will be deployed as part of a 400MW AI data center campus in Uberlândia, Brazil. The initiative is described as one of Latin America’s largest AI infrastructure projects.
The project is being led by RT-One, which confirmed that the facility will integrate Tesla Megapack battery energy storage systems (BESS) as part of a broader industrial alliance that includes Hitachi Energy, Siemens, ABB, HIMOINSA, and Schneider Electric. The project is backed by more than R$6 billion (approximately $1.1 billion) in private capital.
According to RT-One, the data center is designed to operate on 100% renewable energy while also reinforcing regional grid stability.
“Brazil generates abundant energy, particularly from renewable sources such as solar and wind. However, high renewable penetration can create grid stability challenges,” RT-One President Fernando Palamone noted in a post on LinkedIn. “Managing this imbalance is one of the country’s growing infrastructure priorities.”
By integrating Tesla’s Megapack systems, the facility will function not only as a major power consumer but also as a grid-supporting asset.
“The facility will be capable of absorbing excess electricity when supply is high and providing stabilization services when the grid requires additional support. This approach enhances resilience, improves reliability, and contributes to a more efficient use of renewable generation,” Palamone added.
The model mirrors approaches used in energy-intensive regions such as California and Texas, where large battery systems help manage fluctuations tied to renewable energy generation.
The RT-One President recently visited Tesla’s Megafactory in Lathrop, California, where Megapacks are produced, as part of establishing the partnership. He thanked the Tesla team, including Marcel Dall Pai, Nicholas Reale, and Sean Jones, for supporting the collaboration in his LinkedIn post.
Elon Musk
Starlink powers Europe’s first satellite-to-phone service with O2 partnership
The service initially supports text messaging along with apps such as WhatsApp, Facebook Messenger, Google Maps and weather tools.
Starlink is now powering Europe’s first commercial satellite-to-smartphone service, as Virgin Media O2 launches a space-based mobile data offering across the UK.
The new O2 Satellite service uses Starlink’s low-Earth orbit network to connect regular smartphones in areas without terrestrial coverage, expanding O2’s reach from 89% to 95% of Britain’s landmass.
Under the rollout, compatible Samsung devices automatically connect to Starlink satellites when users move beyond traditional mobile coverage, according to Reuters.
The service initially supports text messaging along with apps such as WhatsApp, Facebook Messenger, Google Maps and weather tools. O2 is pricing the add-on at £3 per month.
By leveraging Starlink’s satellite infrastructure, O2 can deliver connectivity in remote and rural regions without building additional ground towers. The move represents another step in Starlink’s push beyond fixed broadband and into direct-to-device mobile services.
Virgin Media O2 chief executive Lutz Schuler shared his thoughts about the Starlink partnership. “By launching O2 Satellite, we’ve become the first operator in Europe to launch a space-based mobile data service that, overnight, has brought new mobile coverage to an area around two-thirds the size of Wales for the first time,” he said.
Satellite-based mobile connectivity is gaining traction globally. In the U.S., T-Mobile has launched a similar satellite-to-cell offering. Meanwhile, Vodafone has conducted satellite video call tests through its partnership with AST SpaceMobile last year.
For Starlink, the O2 agreement highlights how its network is increasingly being integrated into national telecom systems, enabling standard smartphones to connect directly to satellites without specialized hardware.
Elon Musk
Elon Musk’s Starbase, TX included in $84.6 million coastal funding round
The funds mark another step in the state’s ongoing beach restoration and resilience efforts along the Gulf Coast.
Elon Musk’s Starbase, Texas has been included in an $84.6 million coastal funding round announced by the Texas General Land Office (GLO). The funds mark another step in the state’s ongoing beach restoration and resilience efforts along the Gulf Coast.
Texas Land Commissioner Dawn Buckingham confirmed that 14 coastal counties will receive funding through the Coastal Management Program (CMP) Grant Cycle 31 and Coastal Erosion Planning and Response Act (CEPRA) program Cycle 14. Among the Brownsville-area recipients listed was the City of Starbase, which is home to SpaceX’s Starship factory.
“As someone who spent more than a decade living on the Texas coast, ensuring our communities, wildlife, and their habitats are safe and thriving is of utmost importance. I am honored to bring this much-needed funding to our coastal communities for these beneficial projects,” Commissioner Buckingham said in a press release.
“By dedicating this crucial assistance to these impactful projects, the GLO is ensuring our Texas coast will continue to thrive and remain resilient for generations to come.”
The official Starbase account acknowledged the support in a post on X, writing: “Coastal resilience takes teamwork. We appreciate @TXGLO and Commissioner Dawn Buckingham for their continued support of beach restoration projects in Starbase.”
The funding will support a range of coastal initiatives, including beach nourishment, dune restoration, shoreline stabilization, habitat restoration, and water quality improvements.
CMP projects are backed by funding from the National Oceanic and Atmospheric Administration and the Gulf of Mexico Energy Security Act, alongside local partner matches. CEPRA projects focus specifically on reducing coastal erosion and are funded through allocations from the Texas Legislature, the Texas Hotel Occupancy Tax, and GOMESA.
Checks were presented in Corpus Christi and Brownsville to counties, municipalities, universities, and conservation groups. In addition to Starbase, Brownsville-area recipients included Cameron County, the City of South Padre Island, Willacy County, and the Willacy County Navigation District.
Tesla Megapack powers $1.1B AI data center project in Brazil
Starlink powers Europe’s first satellite-to-phone service with O2 partnership
