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.
Elon Musk
Elon Musk’s Boring Company lands a new Middle East deal, and Nashville is about to get faster
The Boring Company signs Abu Dhabi tunnel agreement while adding more Prufrock machines in Nashville.
The Boring Company has signed an agreement with Abu Dhabi to study underground transport and utility tunnels across the emirate, adding a second UAE city to its pipeline as it prepares to also scale up tunneling back home in Nashville.
The deal was signed Thursday at the Liveability and Investment Exhibition (LIVEX 2026) by Boring Company President Steve Davis and Maysarah Mahmoud Salim Eid, director general of the Abu Dhabi Projects and Infrastructure Centre (ADPIC), according to the Abu Dhabi Media Office. Mohamed Ali Al Shorafa, chairman of the emirate’s Department of Municipalities and Transport, attended the signing.
Under the agreement, the two sides will assess feasibility, delivery and operating models for tunnels that could carry passengers or utilities. They will also look at Abu Dhabi’s potential as a regional hub for tunneling work. The current phase is exploratory, and no construction commitment or project budget has been announced.
“Abu Dhabi provides an ideal environment to explore the next generation of underground infrastructure solutions, supported by its ambitious growth vision and strong commitment to advanced technologies,”
Davis said. He added that the company wants to assess how tunnels can “expand urban capacity more efficiently, and enable better use of available space.”
The timing lines up with the money, considering last month, The Boring Company closed a $3 billion Series D led by the UAE and affiliated investors, valuing the company at $23 billion, as Teslarati reported. That round came with a commitment to build more than 150 kilometers of tunnel across the UAE, separate from the Dubai Loop pilot already under contract with Dubai’s Roads and Transport Authority. That pilot covers 6.4 kilometers and four stations linking DIFC and Dubai Mall at a cost of about $154 million.
Back home, The Boring Company projects in Nashville are also scaling up, with the company telling local NewsChannel 5 that a third Prufrock machine could start digging the Music City Loop in late October. A fourth is also targeted before the end of the year. Two machines are already mining Nashville limestone at the same time, and work is underway on a new launch site for the third.
The company said it has made more than 300 design and performance upgrades to its original Nashville machine. It is also working with property owners on more than 40 planned stations, with approvals in place for a future Nashville International Airport connection, a downtown station near the Music City Center, and stops at residential towers and the JW Marriott.
Construction on the Music City Loop began the same evening Tennessee and federal regulators approved the project’s lease in February, and the company targeted its first operational segment for late 2026. Back in Las Vegas, The Boring Company has said it plans to double its Vegas Loop station count by year’s end.
News
SpaceX brings four astronauts home after 8 months in space, and the return was flawless
SpaceX Crew Dragon Freedom returned four Crew-12 astronauts home after 237 days aboard the station.
Four Crew-12 members are back on Earth after 237 days at the International Space Station. SpaceX’s Crew Dragon Freedom splashed down in the Pacific Ocean about 50 miles west of Los Angeles at 11:34 a.m. ET on Thursday.
NASA astronauts Jessica Meir and Jack Hathaway, ESA astronaut Sophie Adenot, and Roscosmos cosmonaut Andrey Fedyaev landed one day after undocking from the station’s Harmony module at 8:05 a.m. ET on Wednesday. NASA confirmed the splashdown minutes later. SpaceX had flagged the 27.5 hour trip home on X while Dragon was still firing its departure burns away from the station.
The descent ran on schedule when Freedom started a nine minute deorbit burn at 10:46 a.m. ET, then hit the thicker atmosphere about 36 minutes later at nearly five miles per second. Chutes deployed at around 18,000 feet, and four main parachutes brought the capsule down to roughly 15 mph at splashdown.
SpaceX fast boats secured Dragon before the recovery ship Shannon hoisted it onto the deck with the crew still inside. Flight surgeons on board ran initial medical checks. All four crew members will be flown ashore by helicopter and then head to NASA’s Johnson Space Center in Houston for rehabilitation.
Splashdown of Dragon confirmed! https://t.co/P2o7A3Gytf
— SpaceX (@SpaceX) October 8, 2026
Crew-12 launched on February 13 from Space Launch Complex 40 at Cape Canaveral, a flight that also marked the first Falcon 9 booster landing at SpaceX’s new LZ-40 pad. Over the mission, the crew completed 3,792 orbits, covered nearly 101 million miles, and carried out four spacewalks to maintain and upgrade the station.
Meir now has 440 cumulative days in space, which places her in NASA’s top 10. This was the first spaceflight for Hathaway and for Adenot, a French Air Force colonel and former helicopter pilot. Fedyaev, who spent 186 days in orbit on Crew-6 in 2023, has now flown two long duration Dragon missions.
The return closes out a busy stretch of Dragon traffic. Crew-13 arrived on October 1 aboard Crew Dragon Grace, which docked just 7 hours and 55 minutes after liftoff, the fastest launch to docking of any U.S. spacecraft in ISS history. Commander Jessica Watkins, pilot Luke Delaney, Canadian Space Agency astronaut Joshua Kutryk, and cosmonaut Sergey Teteryatnikov remain aboard alongside the three person Soyuz MS-29 crew.
With Crew-12 gone, the port is clear for CRS-35, a cargo Dragon carrying the final pair of ISS Roll-Out Solar Arrays. NASA is holding a post-splashdown teleconference at 1:15 p.m. ET covering both the crew’s return and the upcoming cargo launch.
Elon Musk
Elon Musk shuts down talk of TSMC taking over Terafab
Musk says Tesla and SpaceX will build and run Terafab, with TSMC limited to renting.
Elon Musk has drawn a firm line around who will be in charge of Terafab, the giant chip factory Tesla and SpaceX are planning in Texas.
Musk replied to a post on X arguing that Taiwan Semiconductor Manufacturing Company (TSMC) would most likely end up owning and operating the plant. “No, we will build and run the fab. Let there be ZERO doubt about that,” Musk wrote. “Maybe TSMC subleases part of the Terafab if they want, but nothing more than that.”
In plain terms, a sublease means TSMC could rent a section of the complex to make chips, similar to a tenant renting one floor of an office tower. The building, the equipment decisions and the daily operation would stay with Tesla and SpaceX.
@herbertong @thejefflutz No, we will build and run the fab. Let there be ZERO doubt about that.
Maybe TSMC subleases part of the Terafab if they want, but nothing more than that.
— Elon Musk (@elonmusk) October 7, 2026
The comment shuts down speculation that started last week. On October 2, tech journalist Tim Culpan reported that TSMC was exploring ways to help run Terafab’s factories. Musk responded the next day that it was “just discussions, but something may come of it,” as Teslarati reported at the time. That left room for a scenario where the world’s largest contract chipmaker took the wheel. Musk’s latest post closes that door.
Some background helps explain why this matters. Tesla designs its own AI chips today but pays outside companies like TSMC and Samsung to manufacture them. Musk unveiled Terafab in March as a joint project between Tesla, SpaceX and xAI, arguing that existing suppliers cannot expand fast enough to meet his companies’ future demand. The goal is to produce enough chips each year to supply one terawatt of computing power, roughly 50 times what the entire global AI chip industry produces now.
Those chips are meant for Tesla’s Optimus humanoid robots, the Cybercab and Full Self-Driving computers, along with chips for SpaceX’s planned data centers in orbit. Owning the factory means Musk’s companies would not have to compete with every other chip customer for time on someone else’s production lines.
Intel is still part of the picture. The company signed on in April to help design, build and package chips for the project, and CEO Lip-Bu Tan told Bloomberg this week that Intel will keep working on Terafab despite the TSMC chatter.
The project moved from concept to construction planning over the summer. In August, SpaceX confirmed the Grimes County site about an hour from Houston, sent the county a $10 million payment under its tax abatement deal and said civil work would begin shortly. The first phase carries a $16.8 billion price tag, and total spending across all phases could reach as much as $119 billion.
TSMC chairman C.C. Wei has said a new fab typically takes two to three years to build and another one to two years to reach full output. Tesla and SpaceX have never run one, which is why TSMC’s expertise drew so much attention. Musk’s answer suggests he would rather learn that process in house than hand control of a project this central to Tesla’s robotics and autonomy plans to an outside company.
Terafab Texas will be the largest and most valuable building on Earth by far.
And it will be stunningly beautiful. https://t.co/4NweOqTL7y
— Elon Musk (@elonmusk) August 6, 2026