Tesla is receiving support from Indian Union Road Transport Minister Nitin Gadkari, who stated that the automaker should have a reduced import duty rate to test demand for its vehicles.
Following news that the company started lining up supplier deals that will give the company the ability to manufacture and sell its cars in India for the first time in the automaker’s eighteen-year history, Tesla is moving closer to having the authorization to import cars into the country. Tesla is reportedly already in talks with several companies that would supply various car parts In India domestically. Tesla is looking to lock up electrical and mechanical components and various car parts, such as windshields, differential brakes, gears, power seats, and instrument panels.
Indian media outlet Economic Times listed Sona Comstar Ltd., Sandhar Technologies Ltd., and Bharat Forge Ltd. as suppliers already in talks with Tesla to sell automotive parts.
Now, Tesla is receiving support from Nitin Gadkari. Gadkari is pushing for reduced import duties so that Tesla can test the demand for its vehicles, an idea the company proposed within the last few months.
“If they have to manufacture here, they need the numbers, and no one can test the market when you impose such high import duty on the vehicles,” Gadkari said to India’s Economic Times.
The company has yet to make an official statement regarding its potential as a domestic automaker in India, but CEO Elon Musk has suggested the possibility for several years. Most recently, Musk hinted that Tesla would be willing to establish a permanent base in India if it could test demand through imports. Indian government officials were not keen on the idea as they favored local manufacturers for economic reasons. However, talks are beginning to move forward, and Tesla looks to be just months away from testing its sales power if all goes according to plan.
Initially, Tesla lobbied to have Indian officials lower import taxes, which apply to every vehicle not produced in the country. Cars below $40,000 are subject to a 40% tax, while any vehicle more expensive than that has a 100% tax applied to it. This makes a significant number of vehicles widely unaffordable for citizens.
Musk, who was unwilling to commit to building a Gigafactory in India until sales figures proved that demand was sustainable, said the only way Tesla would build a manufacturing site in the country was to test sales through imports. Politicians rebutted with the argument that it could not provide “company-specific” incentives to avoid import taxes, although Tesla lobbied for all EV makers to qualify for the reductions. Indian government officials then stated that the only way Tesla could have reduced imports was if it committed to building a Gigafactory in the region, which ultimately put the situation at a brief standstill.
Government officials then backtracked just a week later, considering the advantages that could come from allowing imports with reduced duties for EVs only. Other automakers, like Volkswagen, supported the idea, but no official statement has been issued by any Indian official or by Tesla regarding the progress of the negotiations.
Tesla India: Gov’t officials ponder sizable import duty reductions for EVs
With suppliers evidently in talks with Tesla, along with several vehicles being spotted testing in the country and now support from Transport Minister Gadkari, the automaker may be just months away from importing vehicles for sales.
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.
Energy
Tesla Energy gains UK license to sell electricity to homes and businesses
The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.
Tesla Energy has received a license to supply electricity in the United Kingdom, opening the door for the company to serve homes and businesses in the country.
The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.
According to Ofgem, the license took effect at 6 p.m. local time on Wednesday and applies to Great Britain.
The approval allows Tesla’s energy business to sell electricity directly to customers in the region, as noted in a Bloomberg News report.
Tesla has already expanded similar services in the United States. In Texas, the company offers electricity plans that allow Tesla owners to charge their vehicles at a lower cost while also feeding excess electricity back into the grid.
Tesla already has a sizable presence in the UK market. According to price comparison website U-switch, there are more than 250,000 Tesla electric vehicles in the country and thousands of Tesla home energy storage systems.
Ofgem also noted that Tesla Motors Ltd., a separate entity incorporated in England and Wales, received an electricity generation license in June 2020.
The new UK license arrives as Tesla continues expanding its global energy business.
Last year, Tesla Energy retained the top position in the global battery energy storage system (BESS) integrator market for the second consecutive year. According to Wood Mackenzie’s latest rankings, Tesla held about 15% of global market share in 2024.
The company also maintained a dominant position in North America, where it captured roughly 39% market share in the region.
At the same time, competition in the energy storage sector is increasing. Chinese companies such as Sungrow have been expanding their presence globally, particularly in Europe.
Elon Musk
Elon Musk shares big Tesla Optimus 3 production update
According to Musk, Tesla is in the final stages of completing Optimus 3, which he described as one of the world’s most advanced humanoid robots.
Tesla CEO Elon Musk has stated that production of Optimus 3 could begin this summer. Musk shared the update in his interview at the Abundance Summit.
According to Musk, Tesla is in the final stages of completing Optimus 3, which he described as one of the world’s most advanced humanoid robots.
“We’re in the final stages of completion of Optimus 3, which is really going to be by far the most advanced robot in the world. Nothing’s even close. In fact, I haven’t even seen demos of robots that are as good as Optimus 3,” Musk said.
He also set expectations on the pace of Optimus 3’s production ramp, stating that the initial volumes of the humanoid robot will likely be very low. Musk did, however, also state that high production rates for Optimus 3 should be possible in 2027.
“I think we’ll start production on Optimus 3 this summer, but very slow at first, like sort of this classic S-curve ramp of manufacturing units versus time. And then, probably reach high volume production around summer next year,” he said.
Interestingly enough, the CEO hinted that Tesla is looking to iterate on the robot quickly, potentially releasing a new Optimus design every year.
“We’ll have Optimus 4 design complete next year. We’ll try to release a new robot design every year,” Musk stated.
Tesla has already outlined broader plans for scaling Optimus production beyond its first manufacturing line. Musk previously stated that Optimus 4 will be built at Gigafactory Texas at significantly higher production volumes.
Initial production lines for the robot are expected to be located at Tesla’s Fremont Factory, where the company plans to establish a line capable of producing up to 1 million robots per year.
A larger production ramp is expected to occur at Gigafactory Texas, where Musk has previously suggested could eventually support production of up to 10 million robots per year.
“We’re going to launch on the fastest production ramp of any product of any large complex manufactured product ever, starting with building a one-million-unit production line in Fremont. And that’s Line one. And then a ten million unit per year production line here,” Musk said previously.
The comments suggest that while Optimus 3 will likely begin production at Fremont, Tesla’s larger-scale manufacturing push could arrive with Optimus 4 at Gigafactory Texas.
Elon Musk
Tesla showcases Optimus humanoid robot at AWE 2026 in Shanghai
Tesla’s humanoid robot was presented as part of the company’s exhibit at the Shanghai electronics show.
Tesla showcased its Optimus humanoid robot at the 2026 Appliance & Electronics World Expo (AWE 2026) in Shanghai. The event opened Thursday and featured several Tesla products, including the company’s humanoid robot and the Cybertruck.
The display was reported by CNEV Post, citing information from local media outlet Cailian and on-site staff at the exhibition.
Tesla’s humanoid robot was presented as part of the company’s exhibit at the Shanghai electronics show. On-site staff reportedly stated that mass production of the robot could begin by the end of 2026.
Tesla previously indicated that it plans to manufacture its humanoid robots at scale once production begins, with its initial production line in the Fremont Factory reaching up to 1 million units annually. An Optimus production line at Gigafactory Texas is expected to produce 10 million units per year.
Tesla China previously shared a teaser image on Weibo showing a pair of highly detailed robotic hands believed to belong to Optimus. The image suggests a design with finger proportions and structures that closely resemble those of a human hand.
Robotic hands are widely considered one of the most difficult engineering challenges in humanoid robotics. For a system like Optimus to perform complex real-world tasks, from factory work to household activities, the robot would require highly advanced dexterity.
Elon Musk has previously stated that Optimus has the capability to eventually become the first real-world example of a Von Neumann machine, a self-replicating system capable of building copies of itself, even on other planets. “Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet,” Musk wrote in a post on X.