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Tesla cannot receive ‘company-specific incentives’ to avoid India import taxes

Credit: Elektrobloger/Instagram

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Just days after Tesla CEO Elon Musk told Twitter followers that the company is likely to attempt importing vehicles into India to test demand, country officials say it cannot offer “company-specific incentives,” regardless of the advantages an entity may offer the government.

Late last week, Musk described the difficult economic conditions that are required in India to import vehicles in the country. Import duties double the price of any car priced at over $40,000. They add 60% of the sticker price to any vehicle priced under that threshold if a foreign automaker wishes to sell a vehicle in India. A hefty price increase for many, this issue has plagued Tesla’s entrance into India for several years.

Teslarati reported last week (via Reuters) that Tesla officials requested India’s government ministries reduce import duties for electric vehicles, stating that the increased number of sustainable powertrains would boost demand and generate revenue for the country. Sources said that Tesla requested that import duties be reduced to 40%, a more reasonable figure that would enable the automaker to test demand in the country before building a production facility in India. The price tag of a production facility would cost Tesla hundreds of millions of dollars, so the company is more willing to test sales figures with imports rather than dive into a possibly unsuccessful market.

Musk said Saturday that “If Tesla is able to succeed with imported vehicles, a factory in India is quite likely.” Getting past the import taxes is the main concern currently, and it seems unlikely that the government is willing to budge, based on a new report.

According to government officials, there is no chance of a single company gaining financial advantages, especially if it is a foreign entity. Officials are unwilling to give Tesla a reduced duty rate to test demand for its vehicles, especially as other politicians have prioritized local manufacturing efforts.

Officials said (via MoneyControl):

“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.”

The report indicates that the official was talking about Apple, a company that attempted to gain special incentives to begin manufacturing its products in India.

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The government is more prone to extend financial advantages to companies willing to manufacture products in the country, especially domestic companies. It is unwilling to reduce taxes for foreign entities, even if it would offer the government increased revenue and environmental advantages. In fact, higher import duties are being considered for “finished products.”

The official added:

“The commerce department has consistently suggested higher import duties for finished products rather than components to support Make in India. Our commitment remains with that.”

Tesla would likely build its vehicles in China at Giga Shanghai and ship them to India, like it has done with Europe since January 2021. However, there seems to be little wiggle room for the automaker, and Indian officials don’t seem willing to budge.

Don’t hesitate to contact us with tips! Email us at tips@teslarati.com, or you can email me directly at joey@teslarati.com.

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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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Elon Musk teases the capabilities of the Tesla Roadster once again

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Elon Musk has once again teased the capabilities of the Tesla Roadster, fueling the anticipation that many have for the vehicle, despite it still having no public production or delivery date.

The Roadster is among the most anticipated vehicles in the automotive sector currently, and as Tesla has teased its capabilities, from a lightning-fast 1.1-second 0-60 MPH acceleration to potential hovering with cold-gas thrusters, people are eager to see it.

Although the design seemed to be finalized, there was still more work to be done. Earlier this year, as Tesla was showcasing some of the Roadster’s capabilities to Musk, he stated that it was capable of even more.

This pushed back its production date even further, much to the chagrin of those who have been waiting years for it.

Musk continues to tease us all, and as we sit here waiting hopelessly for it to be revealed, he said today that it is “something special beyond a car.”

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Musk’s words were in response to a video posted by Tesla China, showing the Roadster in a new promotional video created by a fan.

The Roadster was planned to be released in 2020, but here we are in 2025, and there is still no sign of the vehicle entering production. However, Tesla did say earlier this year that it would host a demo event for the Roadster, where the company would showcase its capabilities.

Lars Moravy said earlier this year:

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“Roadster is definitely in development. We did talk about it last Sunday night. We are gearing up for a super cool demo. It’s going to be mind-blowing; We showed Elon some cool demos last week of the tech we’ve been working on, and he got a little excited.”

Tesla exec gives big update on Roadster, confirming recent rumor

The delays have been attributed to “radically increased design goals” for the vehicle, which have, without a doubt, improved its capabilities, but at the same time, we just want to know if it’s ever going to come.

Tesla can always make it “better,” but at what point do you say, “Okay, it’s time to show this thing off.” They could always build another, even more capable supercar in the next ten years.

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Elon Musk reiterates shocking xAI detail, and hints at an upcoming monster

He also announced that xAI’s upcoming model, Grok 5, will begin training very soon.

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MINISTÉRIO DAS COMUNICAÇÕES, CC BY 2.0 , via Wikimedia Commons

Elon Musk has reiterated a rather shocking tidbit about xAI’s impressive scores at the ARC-AGI benchmark.

He also announced that xAI’s upcoming model, Grok 5, will begin training very soon.

xAI results on the ARC-AGI benchmark

In a recent post on social media platform X, Greg Kamradt, President of the ARC Prize Foundation, noted that Grok 4 has been used in two SOTA submissions to the ARC-AGI V1 and V2 benchmarks. The submissions, which were the best that the foundation has encountered to date, were done using xAI’s large language model, Grok 4. 

As per Kamradt, when asked about why the submissions were done using Grok 4, the authors stated that “It was the best model I used in testing.” Musk was evidently proud of this accomplishment, though he also highlighted that these accomplishments were attained with just Grok 4. This suggests that once Grok 5 is in the picture, xAI’s lead in the AI sector could become notable.

Grok 5 incoming

Elon Musk has shared a number of tidbits about Grok 5 as of late. In recent comments on X, the Tesla and SpaceX CEO stated that he believes Grok 5 has the potential to actually reach artificial general intelligence (AGI). This suggests that Grok 5 would be nothing short of a monster, as it could be capable of matching or surpassing human-level intelligence across tasks such as thinking, reasoning, and other domains by a substantial margin.

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Grok 5 may also be coming soon. As per Musk in another post on X, xAI will be starting the training of Grok 5 in a few weeks. Musk definitely seems to be highly optimistic about the capabilities of Grok 5, with the CEO stating late last month that the update would be coming before the end of the year and that it will be “crushingly good.”

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SpaceX is partnering with chipmakers to enable Starlink satellite-to-cell service

President Gwynne Shotwell outlined the effort during a space industry conference in Paris.

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Credit: SpaceX/X

SpaceX is working with microchip manufacturers to integrate satellite-connectivity hardware into smartphones, advancing its plan for direct-to-device services through Starlink. 

The move follows the company’s $17 billion acquisition of wireless spectrum from EchoStar Corp., a deal that positions SpaceX to operate more independently of traditional telecom carriers. 

President Gwynne Shotwell outlined the effort during a space industry conference in Paris this week, as noted in a Bloomberg News report.

Starlink direct-to-device

Starlink currently serves millions of customers in over 100 countries, primarily through ground-based dishes. The company, however, is now expanding into satellite-to-cell service, which should enable unmodified phones to connect directly with orbiting satellites. While SpaceX has a partnership with T-Mobile US, the EchoStar spectrum purchase gives it more control to negotiate with global carriers on its own terms.

“We’re working with chip manufacturers to get the proper chips in phones,” the SpaceX President stated. “We will now be initiating discussions with telcos in a different way now. Now it’s our spectrum, but we want to work with them, almost providing capacity and wholesaling capacity to their customers.”

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The company plans to launch satellites capable of supporting its direct-to-device business within two years, with early mobile phone testing expected by late 2026.

Starship program continues test flights

Shotwell also addressed SpaceX’s Starship program, which recently completed its 10th test flight in August. She said the mission met all objectives, providing a critical morale boost to teams after a challenging development year. 

“My Starship team needed that win,” Shotwell noted. “Development programs always are kind of a 24/7 operation, and I was really pleased for them.”

SpaceX is planning to fly one more iteration of the current Starship prototype, known as V2, before transitioning to the next-generation V3 vehicle. That version, expected to debut late this year or early 2026, is designed to be more capable and support eventual crewed missions to the Moon and Mars. 

“The V3, which we want to fly hopefully late this year, but maybe early next year, is really the vehicle that could take humans to the moon and Mars,” Shotwell stated.

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