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Tesla India: Gov’t officials ponder sizable import duty reductions for EVs
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.
If Tesla is able to succeed with imported vehicles, then a factory in India is quite likely.
— Elon Musk (@elonmusk) July 23, 2021
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.
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.
News
Tesla Robotaxi appears to be heading to a new U.S. city
Things are expanding for Robotaxi, but the big sign that it is really moving along greatly will be with the expansion to a new city. Tesla has not gone outside of Austin or the Bay Area as of yet, and launching in a new city will be a great indicator of progress.
Tesla Robotaxi appears to be heading to a new U.S. city, and although the company has revealed plans to launch in six new metros this year, it has yet to establish a new location outside of Austin and the Bay Area of California, where it has operated since last Summer.
A lot full of Model Y vehicles was spotted in Henderson, a town just north of Las Vegas, but there seems to be more than just this hint indicating that the Sin City will be the next location to offer potentially driverless rides in a Tesla using its Full Self-Driving suite.
These Model Ys are not your typical vehicles, as they are fitted with hardware that is only on Robotaxis: a rear camera washer is the dead giveaway:
🚨 These rear camera washers are only present on Robotaxi vehicles
Maybe Las Vegas is the next city to get the Robotaxi suite 😀 https://t.co/my3da5L4zc pic.twitter.com/jYFQuX1j2E
— TESLARATI (@Teslarati) March 17, 2026
The photos and video of the lot were taken by TheZacher on X, who spotted the Model Y fleet in the Henderson parking lot.
The rear camera washer is the main piece of evidence here that indicates Tesla could be looking to expand Robotaxi to Las Vegas, a major ride-hailing hot spot, as it is one of the biggest tourist attractions in the United States. Ride-sharing is a major industry in Vegas, especially for those who are staying off the Strip.
Tesla has also been extremely transparent that Vegas is on its radar for the Robotaxi fleet, as it revealed last year that it was one of five new U.S. cities that it planned to launch the ride-hailing service in this year.
Tesla confirms Robotaxi is heading to five new cities in the U.S.
The others were Phoenix, Dallas, Houston, and Miami.
Things are expanding for Robotaxi, but the big sign that it is really moving along greatly will be with the expansion to a new city. Tesla has not gone outside of Austin or the Bay Area as of yet, and launching in a new city will be a great indicator of progress.
It will also give Tesla a new benchmark against rival company Waymo, which has operated in Las Vegas for some time.
News
Tesla Roadster gets new unveiling date once again
Musk announced last year that the unveiling, which initially happened back in 2018, would take place on April Fool’s Day. Initial deliveries at the 2018 event were slotted for 2020, but delays in the project, as well as prioritization of other things, continued to push the Roadster back.
The Tesla Roadster is perhaps the most anticipated vehicle in the company’s history, but those who have been waiting anxiously for it will have to push their timelines back once again.
Tesla CEO Elon Musk has revealed that the company is once again pushing back the unveiling event that was originally planned for April 1. It will now take place “probably in late April.”
True.
New Roadster unveil probably in late April. https://t.co/NShZxpK5cI
— Elon Musk (@elonmusk) March 17, 2026
Musk announced last year that the unveiling, which initially happened back in 2018, would take place on April Fool’s Day. Initial deliveries at the 2018 event were slotted for 2020, but delays in the project, as well as prioritization of other things, continued to push the Roadster back.
There has been so much hype about the Roadster that people are right to be excited about the prospect of its existence.
Musk’s most recent rumblings about the vehicle came last Fall, when he appeared on the Joe Rogan Experience podcast, where he once again hinted the car would be able to hover for a short period.
He said:
“Whether it’s good or bad, it will be unforgettable. My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars. I think if Peter wants a flying car, he should be able to buy one…I think it has a shot at being the most memorable product unveiling ever. [It will be unveiled] hopefully before the end of the year. You know, we need to make sure that it works. This is some crazy technology in this car. Let’s just put it this way: if you took all the James Bond cars and combined them, it’s crazier than that.”
Additionally, he said the vehicle would not be something that would prioritize safety. Musk said that “If safety is your number one goal, do not buy the Roadster.” It’s made for speed and excitement, not for grocery-getting.
Elon Musk just said some crazy stuff about the Tesla Roadster
As the April 1 unveiling event that was originally planned was nearing without any communication to fans, media, or anyone who would potentially be in attendance, it seemed to be pretty obvious that Tesla was not ready to pull the trigger on the event quite yet.
There could be some last-minute things to finalize, or it could be something else. One thing is for certain, though: we are not super surprised that things were moved back.
Tesla has definitely been putting some things in motion for the Roadster. A few months back, Tesla started to ramp up hiring for the Roadster, and earlier in March, it submitted a patent application for a new seat design.
Elon Musk
Tesla named by U.S. Gov. in $4.3B battery deal for American-made cells
What began as an open secret in the energy industry was confirmed by the U.S. Department of the Interior on Monday: Tesla is the buyer behind LG Energy Solution’s blockbuster $4.3 billion battery supply agreement.
What began as an open secret in the energy industry is becoming more real after the U.S. Department of the Interior named Tesla as the stakeholder in the LG Energy Solution’s blockbuster $4.3 billion battery supply agreement.
Tesla and LG Energy Solution are expanding their partnership to build a LFP prismatic battery cell manufacturing facility in Lansing, Michigan, launching production in 2027. The announcement, made as part of the Indo-Pacific Energy Security Summit results, ends months of speculation.
“American-made cells will power Tesla’s Megapack 3 energy storage systems produced in Houston, creating a robust domestic battery supply chain.”, notes a press release on the U.S. Department of the Interior website.
Tesla has long utilized China’s Contemporary Amperex Technology Co. (CATL), the world’s largest LFP battery maker, as one of its primary suppliers. That relationship made financial sense for years, considering that Chinese LFP cells were cheap, abundant, and reliable. But with escalated tariffs on Chinese imports and an increasingly growing Tesla Energy business that’s particularly reliant on LFP cells for products including its Megapack battery storage units designed for utilities and large-scale commercial projects.
The announcement of a deepened partnership between LG Energy Solution and Tesla has strategic logic for both parties. For Tesla, it secures a tariff-compliant, domestically produced battery supply for its fast-growing energy division. LGES, now producing LFP batteries in Michigan, becomes the only major supplier currently scaling U.S. production, outpacing rivals like Samsung SDI and SK On. LG Energy Solution’s Lansing plant, formerly known as Ultium Cells 3, was previously operated as a joint venture with General Motors. LGES acquired GM’s stake in May 2025 and now fully owns the site, with a production capacity of 50 GWh per year. LG Energy said the contract includes options to extend the supply period by up to seven years and boost volumes based on further consultations.
For the broader industry, the ripple effects are significant. This deal signals that domestic battery manufacturing can be financially viable and not just aspirational. Utilities, energy developers, and rival automakers will take note as American-made LFP supply becomes a competitive reality rather than a distant promise.
For consumers, the benefits will take time but are real. A more resilient, U.S.-based supply chain means fewer price shocks from trade disputes, more stable Megapack availability for the grid storage projects that reduce electricity costs, and long-term downward pressure on energy storage prices as domestic production scales.
Deliveries are set to begin in 2027 and run through mid-2030, and as grid storage demand accelerates, reliable, US-made battery supply is no longer a future ambition. It is becoming a core requirement of the country’s energy strategy.
Tesla Robotaxi appears to be heading to a new U.S. city
Tesla Roadster gets new unveiling date once again
