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Tesla must commit to buying $500M of local parts in India before its tax cut request can be considered: report
Amidst what appears to be an ongoing stalemate between Tesla and India, reports have recently emerged suggesting that the country is willing to consider the EV maker’s request for import tax cuts. That is, at least, if Tesla would be open to purchasing $500 million worth of domestic auto components from India.
A commitment to purchase $500 million worth of auto components from India would be a notable move for Tesla. The company, after all, reportedly stated back in August 2021 during a meeting with Indian officials that it had already sourced components worth $100 million from the country. Back then, Tesla reportedly stated that it would be sourcing more parts from India following any tax concessions, and it would be making investments in projects such as the country’s EV charging infrastructure.
The recent report, which was published in Bloomberg Quint, cited a person who is reportedly familiar with the Indian government’s current stance regarding Tesla. The publication’s source, who opted to remain anonymous since discussions about the EV maker’s potential entry into India remain private for now, added that Tesla would have to agree to ramp up domestic auto parts purchases by about 10-15% a year until an appropriate level had been attained.
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$19.99 USDApart from these, Tesla must reportedly approach India’s government with an auto parts sourcing plan that will be proportional to the company’s vehicle sales expectations for the country. Tesla is reportedly advised to export India-made components to China as well, the publication’s source noted. A representative from India’s transport ministry and Tesla has yet to comment on the recent updates.
While Tesla has been testing vehicles in India since last year, the company’s entry into India has been rife with challenges. Back in July, Tesla CEO Elon Musk noted that import levies in India are among the highest in the world. And he would be right, considering that imported electric vehicles could receive taxes as high as 100%. This is extremely high, especially compared to the 15-30% import duties on parts that are shipped for assembly.
Back in October, India’s Road Transport Minister Nitin Gadkari requested that Tesla not import vehicles that are produced in the company’s Gigafactory Shanghai facility. Vivek Johri, chairman of India’s Central Board of Indirect Taxes and Customs, rejected Tesla’s request for lower import taxes earlier this month as well. Reiterating to the country’s longtime stance, Johri urged Tesla to bring in partially-built vehicles so that they could be assembled locally instead.
Despite the challenges that Tesla has faced so far in its attempt to enter India, the EV maker has made some considerable progress over the past year. Over 2021, the company received homologation certificates for seven of its car models, and Supercharger stalls have also been shipped to the country. Several Indian politicians have also extended offers to Tesla, urging the EV maker to build a facility in their respective states.
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Tesla recently received its largest order for the all-electric Semi from Einride, a Swedish transport service, for 500 units, a groundbreaking invoice to receive before the first deliveries begin.
Even more remarkable, Einride CEO Roozbeh Charli said in a recent interview that he expects his company to take delivery of all 500 — the entire order — before the end of 2027. He even expects to have 75 Tesla Semi units in the Einride fleet before the end of this year.
🚨 Einride CEO Roozbeh Charli on the Tesla Semi partnership:
“If we start with the Amazon announcement that we did earlier this year, that was on the back of having gone through a proving period together with them and proving out our technology. Then we took that next step in… pic.twitter.com/oazkXjwoig
— TESLARATI (@Teslarati) August 28, 2026
Charli said the Tesla partnership was part of a broader push, along with its earlier partnership with Amazon. Einride is assisting Amazon with the use of its Saga AI platform, which helps eliminate questions about budgeting and forecasting for logistics companies.
The Semi, as well as Tesla’s production and subsequent delivery of the units to Einride, will help the company “to have a good supply of vehicles that we can deploy on the [Saga AI] platform,” Charli said. “Tesla is also a relationship we’ve had for a while, and as the Tesla Semi deliveries are firming up, we decided to do a larger commitment to that and deploy that on our platform.”
In its initial announcement, Einride said it anticipated taking delivery of the trucks over the next two years, but now it appears the company is expecting all 500 units within the next 16 months.
Built at a dedicated factory in Sparks, Nevada, the Tesla Semi has been perhaps the biggest and most intensive testing process the company has ever had for a single vehicle model. For the past several years, Tesla has been working with many companies, most notably Frito-Lay and PepsiCo, to gain knowledge on the performance on regional routes.
Tesla plans to launch the Semi officially on September 24, five months after production started ramping.
Additionally, drivers have said they are happy about the Semi’s performance and that its numerous safety and productivity features have made their jobs and routes much easier.
Tesla Cybercab is using a unique strategy for picking up the correct rider, which is a crucial part of ride-hailing to ensure people end up in the right place and are charged the correct price.
Cybercab will utilize an RGB strip in its front light bar that will illuminate in a variety of different colors to mark itself.
This identifying mark will also appear in the Robotaxi app, giving riders in the same location a notable distinction in an effort to avoid any confusion regarding who should get in each vehicle.
🚨 Tesla is using different light bar colors to help riders understand which vehicle is theirs
Pretty cool strategy pic.twitter.com/eGMpEMeRpc
— TESLARATI (@Teslarati) August 27, 2026
Other ride-hailing services use similar strategies: Lyft and Uber rides are recognizable through driver identity, vehicle type and color, as well as license plate. Waymo will display the rider’s initials on top of the vehicle, letting them know that the specific vehicle for them has arrived.
Tesla’s strategy is unique and interesting, but there are some flaws. Cybercab’s main purpose is aimed toward being an autonomous ride for all, including those who have disabilities like being blind or even color blind.
Tesla will likely have something in the pipeline for those who cannot see colors or have limited vision. There will definitely be multiple ways to identify which vehicle is the one that “you” specifically ordered.
Cybercab is set to start giving public rides next Thursday, September 3, in Austin, as it announced a dedicated event last week and invited many members of the Tesla community.
Additionally, members of the public will be invited as well. Tesla has been offering employee rides in Cybercab for nearly two months.
Tesla has said goodbye to one customization option for its vehicles: the wrap service it launched several years ago.
After launching an in-house wrap service in August 2020 for the first time in China. In the U.S., it launched in October 2023. Tesla continued to expand the program and adjust it with better pricing and fewer options for the Cybertruck.
By December 2023, it was giving owners of the Model 3, Model Y, and the Cybertruck the opportunity to give their vehicle a fresh look with a vinyl wrap.
Tesla revamps in-house vinyl wrap service with better pricing
It was only available in five locations: Costa Mesa, Oceanside, Santa Clara, West Covina, all in California, and Seattle, Washington.
However, Tesla made some big adjustments to its shop, and the wrap service is officially gone:
Tesla has made a LOT of changes to its online shop recently — price increases, price cuts, new options, and several products being removed entirely.
Some of the biggest increases are wheel covers. 👀
📈 PRICE INCREASES
• 2017-2023 | Model 3 Aero Wheel Cover — Style: Refresh…— Phoenix Self-Driving 🐦🔥 (@PhoenixFSD) August 25, 2026
Wraps are very popular across the Tesla lineup, especially since the company offers relatively few colors. Many choose to wrap their Teslas with interesting colors, patterns, or even finishes, turning their cars from glossy to satin or matte.
However, Tesla’s wrap service was so limited geographically that it never really had a chance to get off the ground or compete with local shops. Every area in the United States is now overflowing with detailing shops, mobile detailers, and other automotive specialists, many of whom perform wrap services.
Tesla’s service was confined to the Pacific time zone and only spanned across two states. It was never going to be something Tesla was a major competitor in, nor was it going to disrupt the wrapping industry. Now that the program has ended, it seems pretty ideal to believe it was always going to be a short-term thing.
Along with the wrap service, Tesla removed several other products, but nothing too crazy. The Model 3 Door Pocket and Cupholder Liners, the Model S 19″ Magnetite Wheel and Winter Tire Package, Model X/Y Ski/Snowboard Carrier for Hitch Rack, Tesla’s Electric Summer Party Tee, and the Electric Summer Tee were the other items the company totally eliminated from its online shop.
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