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Tesla India: Gov’t officials ponder sizable import duty reductions for EVs

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Tesla’s request for import tax reductions in India has government officials thinking about the possibility of rolling back the costly duties, sources say.

For years, Tesla has been trying to figure out a way to enter the Indian automotive market. It has gotten quite serious this year, especially after Tesla has obtained business licenses and fans in the country are requesting that CEO Elon Musk make it happen more than ever before. Things seemed to be working in the right direction, that is until Tesla started lobbying for import duty reductions in July, a request that was shot down and barely considered by some officials.

“No such proposal is under consideration in Ministry of Heavy Industries,” Minister Krishan Pal Gurjar said in early August, speaking of possible reductions of import duties. The duties currently affect any vehicle that needs to be imported and subjects cars under $40,000 to a 60% tax. Anything more expensive than that is subjected to a 100% tax, doubling the cost of the car.

This effectively has Tesla and Indian government officials at a standstill. CEO Elon Musk stated that Tesla would not produce cars at a production facility in India until it can test demand through imports.

“If Tesla is able to succeed with imported vehicles, then a factory in India is quite likely,” Musk tweeted on July 23rd. The dismissiveness to rollback import duties affects Tesla’s ability to test demand as many customers are either unwilling or unable to pay the vehicle’s price and pay the hefty duties on top of the cost of the car.

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Reuters is reporting that Indian government officials are considering slashing import duties from 60% to 40% for sub-$40,000 vehicles and 100% to 60% for cars over the $40k threshold. If the change is made, Tesla will likely have more opportunities to test demand, which could open up the possibility for Gigafactory India in the future.

“We haven’t firmed up the reduction in duties yet, but there are discussions that are ongoing,” one official said in the report. In just a week, officials have gone from “there are no discussions” to “there are discussions that are ongoing.” Evidently, India may have realized the potential benefits of allowing electric automakers, like Tesla, to test demand in their country. Automakers from various corners of the world may flock to India for production facilities and potential sales, especially as the country has one of the largest automotive markets globally.

India has the fifth-largest concentration of annual vehicle sales, with about three million units sold every year. However, Reuters said that a majority of the vehicles are priced under $20,000. EVs only account for less than 1% of the market share in the country.

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With a heavy focus on increasing local manufacturing to boost the country’s economy, India’s government officials have been dismissive of allowing more imported vehicles across the borders. Now officials state that reducing import duties won’t be an issue. Still, there needs to be advantages for the government and local suppliers and not just the automakers selling the cars.

“Reducing import duties is not a problem as not many EVs are imported in the country. But we need some economic gain out of that. We also have to balance the concerns of the domestic players,” one official stated.

What do you think? Let us know in the comments below, or be sure to email me at joey@teslarati.com or on Twitter @KlenderJoey.

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 launches Full Self-Driving in a new region

Today, Tesla launched Full Self-Driving in Australia for purchase by car buyers for $10,100, according to Aussie automotive blog Man of Many, which tried out the suite earlier this week.

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Credit: Tesla

Tesla has launched its Full Self-Driving suite in a new region, marking a significant step in the company’s progress to expand its driver assistance suite on a global scale.

It is also the first time Tesla has launched FSD in a right-hand-drive market.

Today, Tesla launched Full Self-Driving in Australia for purchase by car buyers for $10,100, according to Aussie automotive blog Man of Many, which tried out the suite earlier this week.

Previously, Basic and Enhanced Autopilot suites were available, but the FSD capability now adds Traffic Light and Stop Sign Control, along with all the features of the previous two Autopilot suites.

It is the first time Tesla has launched the suite by name in a region outside of North America. In China, Tesla has “City Autopilot,” as it was not permitted to use the Full Self-Driving label for regulatory reasons.

However, Tesla still lists Full Self-Driving (Supervised) as available in the U.S., Canada, China, Mexico, and Puerto Rico.

The company teased the launch of the suite in Australia earlier this week, and it appeared to have been released to select media members in the region earlier this week:

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Tesla FSD upcoming Australia release seemingly teased bv media

The rollout of Full Self-Driving in the Australian market will occur in stages, as Model 3 and Model Y vehicles with Hardware 4 will receive the first batch of FSD rollouts in the region.

TechAU also reported that “the initial deployment of FSDs in Australia will roll out to a select number of people outside the company, these people are being invited into Tesla’s Early Access Program.”

Additionally, the company reportedly said it is “very close” to unlocking FSD in customer cars:

Each new Tesla sold will also come with a 30-day free trial of the suite.

Australia is the sixth country to officially have Full Self-Driving available to them, following the United States, Canada, China, Mexico, and Puerto Rico.

Here’s the first look at the suite operating in Australia:

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Tesla AI6 chips will start sample production at surprising Samsung site

AI6 is expected to be used in Tesla’s expanding lineup of high-volume products, such as the Cybercab and Optimus.

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Credit: Tesla/YouTube

It appears that the initial sample production of Tesla’s next-generation AI6 chip would not start in Samsung’s United States-based facilities. 

AI6 is expected to be used in Tesla’s expanding lineup of high-volume products, such as the Cybercab and Optimus.

Early AI6 production

As noted in a ZDNet Korea report, the production of initial samples of Tesla’s AI6 chip is expected to start at Samsung Electronics’ domestic foundry and packing facilities in South Korea. Mass production for AI6 chips will follow at the tech giant’s Texas-based foundry in Taylor, which is expected to start operations in 2025. Investment in mass production facilities for the Taylor plant are expected to start this year, the publication noted.

Samsung has reportedly finalized the process design kit for its second-generation 2nm technology. This node offers a 12% performance improvement, 25% lower power consumption, and an 8% reduction in chip area compared to its previous-generation counterparts. 

Tesla’s AI6 deal

As per previous reports, Tesla has signed a $16.5 billion contract with Samsung for the production of its AI6 chips. In a post on social media platform X, Musk clarified that $16.5 billion is actually just the bare minimum. Considering that the demand for AI6 chips will be substantial due to the ramp of products such as Optimus and the Cybercab, it would not be farfetched if the deal becomes notably larger in the future.

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Musk has shared his excitement for Samsung’s production of AI6 chips, with the CEO stating on X that he would “walk the line personally” in the facility to “accelerate the pace of progress.” In a follow-up comment, the Tesla CEO stated that Samsung is fully aware of what a real partnership with Tesla will be like. “I had a video call with the chairman and senior leadership of Samsung to go over what a real partnership would be like. Use the strengths of both companies to achieve a great outcome,” Musk wrote in his post. 

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Elon Musk’s Boring Company begins Tesla FSD testing in Las Vegas tunnels

The update was shared by Las Vegas Convention and Visitors Authority (LVCVA) CEO Steve Hill.

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Credit: The Boring Company/X

The Boring Company has started testing Tesla’s Full Self-Driving (Supervised) system in its Las Vegas tunnels. 

The update was shared by Las Vegas Convention and Visitors Authority (LVCVA) CEO Steve Hill in a comment to Fortune.

Controlled FSD testing

In his comments, Hill noted that Tesla’s FSD tests in the Boring Company’s underground tunnels in Las Vegas have been going on for months. However, the full-self driving Teslas have reportedly not been carrying passengers during the tests. Interestingly enough, Hill noted that the FSD-driven vehicles have not had any incidents in the Boring Company tunnels yet, though safety drivers have been required to intervene “periodically.”

Hill further noted that the self-driving Teslas have found some spots that seem quite difficult in the underground tunnels system. The LVCVA CEO added that the rock walls of the Boring Company tunnels and their colorful lighting have created some “interesting but odd lighting” for FSD. That being said, Hill noted that the FSD tests are ongoing, though the LVCVA will likely be a consultant before the self-driving vehicles’ safety drivers are removed. 

The executive, however, noted that it will only be a matter of time before the Teslas in Las Vegas’ Boring Company tunnels are operating without a driver. “Sooner or later, this is going to be autonomous,” Hill said.

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Vegas Loop updates

The Boring Company’s underground transit system has been operating beneath the Las Vegas Convention Center for about four years. While the network is slated for expansion across more of the city, it currently connects the convention grounds with a handful of nearby hotels. Updates from the Boring Company’s official social media account on X suggests that tunneling is underway across other stops in Las Vegas.

As per the Boring Company on its official website, the greater Vegas Loop, when completed, will have 104 stations across 68 miles of tunnels. This should allow the underground system to serve an estimated 90,000 passengers per hour. It will also be able to connect key locations across the city, such as Harry Reid International Airport, Allegiant Stadium, and downtown.

While the Vegas Loop is nowhere near complete, Hill noted that the system is already well appreciated by residents and visitors. As per the LVCVA CEO, the underground transport system is the “highest rated feature we have” at the Convention Center.  “People love it,” he said, adding that the only reason the tunnels are not coming faster is due to holdups with permits. “We’re holding them back. They’re not holding us back,” he stated.

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