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Tesla targets 2022 to finalize India manufacturing plans: analyst

Tesla CEO Elon Musk with India Prime Minister Narendra Modi (Photo: Narendra Modi/Twitter)

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Tesla’s manufacturing efforts in India could launch as soon as 2022, according to Soumen Mandal, an analyst at Counterpoint Research. Tesla has been targeting an entrance into the Indian automotive market for several years, with 2021 seeing the most progress for the electric automaker to finally begin building its cars in the country.

Mandal sees India as perhaps one of the largest beneficiaries of the ongoing EV movement globally, and the analyst believes Tesla is well aware of this fact. If this is the case, Tesla will likely want to make their mark early and often, as it could prove to be a deciding factor in whether the company tastes success in India, a risky region for the company’s growing initiative to transition the Earth to sustainable energy.

“None of the big automakers wants to leave out the opportunity to acquire a share in the India market,” Mandal said, according to a new report from Economic Times of India“Tesla is not an exception in this case. The cheap availability of resources and lower labor cost will allow Tesla as well as other automakers to earn a higher profit if they set up a local manufacturing or assembly plant.”

Tesla CEO Elon Musk with India Prime Minister Narendra Modi (Photo: Narendra Modi/Twitter)

Tesla has sparred with government officials in India for several months, playing a game of chess to see which entity will cater to the other’s wishes. At first, Tesla planned to build a manufacturing facility in the region. However, CEO Elon Musk reasonably backtracked as he was not yet convinced that Tesla would be a good fit in India.

Instead, Musk wanted to test the demand for Tesla’s EVs in India by utilizing an import method. As Tesla has an already active production facility in Shanghai and another in Germany that will begin production imminently, there are plenty of routes for Tesla’s EVs to make it to India. The issue remains, however: import duties are doubling the price of vehicles, and Tesla won’t be able to accurately test demand in India if these taxes are not reduced.

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India’s currently active political administration is undoubtedly keen on keeping manufacturing efforts at home. This means that Tesla’s requests for import duty reductions were likely scoffed at by the country’s higher-ups, who had no intentions of continuing any talks of catering to Tesla’s wishes. However, government officials once again derailed Tesla’s attempts to make headway with these requests, as officials stated India couldn’t make “company-specific incentives” a reality. Instead, Tesla would have to launch a manufacturing plant in India, which put the possibility of “Tesla India” on ice for the time being.

This wish was eventually reconsidered by some government officials. Duties do have the possibility of being pulled back. One Indian official said, “We haven’t firmed up the reduction in duties yet, but there are discussions that are ongoing.”

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

Mandal believes that India will eventually work something out with Tesla as the opportunity may be too good to pass up. “Hence, the desire to earn more profit as well as the wish to acquire a market share in one of the to-be largest auto markets is bringing Tesla to India,” the analyst said. Tesla has been the only automaker to basically avoid any production stoppages due to the global semiconductor shortage, and India must know that. “All most every automaker is currently suffering from the ongoing semiconductor shortage. While most of the automakers like Stellantis, Volkswagen, Toyota, BMW, Ford and others have cut production severely due to the ongoing chip crisis, Tesla has not been affected significantly,” Mandal said.

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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 Cybercab display highlights interior wizardry in the small two-seater

Photos and videos of the production Cybercab were shared in posts on social media platform X.

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Credit: Tesla Robotaxi/X

The Tesla Cybercab is currently on display at the U.S. Department of Transportation in Washington, D.C., and observations of the production vehicle are highlighting some of its notable design details. 

Photos and videos of the production Cybercab were shared in posts on social media platform X.

Observers of the Cybercab display unit noted that the two-seat Robotaxi provides unusually generous legroom for a vehicle of its size. Based on the vehicle’s video, the compact two-seater appears to offer more legroom than Tesla’s larger vehicles such as the Model Y, Model X, and Cybertruck.

The Cybercab’s layout allows Tesla to dedicate nearly the entire cabin to passengers. The vehicle is designed without a steering wheel or pedals, which helps maximize interior space.

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Footage from the display also highlights the Cybercab’s large center screen, which is positioned prominently in front of the passenger bench. The display appears intended to provide entertainment and ride information while the vehicle operates autonomously.

Images of the vehicle also show an additional camera integrated into the Cybercab’s C-pillar. The extra camera appears to expand the vehicle’s field of view, which would be useful as Tesla works toward fully unsupervised Full Self-Driving.

Tesla engineers have previously explained that the Cybercab was designed to be highly efficient both in manufacturing and in operation. Cybercab Lead Engineer Eric E. stated in 2024 that the Robotaxi would be built with roughly half the number of parts used in a Model 3 sedan.

“Two seats unlocks a lot of opportunity aerodynamically. It also means we cut the part count of Cybercab down by a substantial margin. We’re gonna be delivering a car that has roughly half the parts of Model 3 today,” the Tesla engineer said.

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The Tesla engineer also noted that the Cybercab’s cargo area can accommodate multiple golf bags, two carry-on suitcases, and two full-size checked bags. The trunk can also fit certain bicycles and a foldable wheelchair depending on size, which is quite impressive for a small car like the Cybercab.

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Elon Musk’s xAI wins permit for power plant supporting AI data centers

The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).

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Mississippi regulators have approved a permit allowing Elon Musk’s artificial intelligence company xAI to construct a natural gas power plant in Southaven. The facility is expected to support the company’s expanding AI infrastructure tied to its Colossus data center operations near Memphis.

The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).

According to the report, regulators “voted to approve the permit” of xAI subsidiary MZX Tech LLC to construct a power plant featuring 41 natural gas-burning turbines “after careful consideration of all public comments and community concerns.”

The Mississippi Department of Environmental Quality stated that the permit followed a regulatory review process that included public comments and community input. Jaricus Whitlock, air division chief for the MDEQ, stated that the project met all applicable environmental standards.

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“The proposed PSD permit in front of the board today not only meets all state and federal permitting regulations, but goes above and beyond what is required by law. MDEQ and the EPA agree that not a single person around our facilities will be exposed to unhealthy levels of air pollution,” Whitlock stated.

The planned facility will help provide electricity for xAI’s AI computing infrastructure in the Memphis region.

The Southaven project forms part of xAI’s efforts to scale computing capacity for its artificial intelligence systems.

The company currently operates two major data centers in Memphis, known as Colossus 1 and Colossus 2, which provide computing power for xAI’s Grok AI models. xAI is also planning to build another large data center in Southaven called Macrohardrr, which would be located in a warehouse previously used by GXO Logistics.

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Large-scale AI training requires substantial computing power and electricity, prompting technology companies to develop dedicated energy infrastructure for their data centers.

SpaceX President Gwynne Shotwell previously stated that xAI plans to develop 1.2 gigawatts of power capacity for its Memphis-area AI supercomputer site as part of the federal government’s Ratepayer Protection Pledge. The commitment was announced during an event with United States President Donald Trump.

“As part of today’s commitment, we will take extensive additional steps to continue to reduce the costs of electricity for our neighbors. xAI will therefore commit to develop 1.2 GW of power as our supercomputer’s primary power source. That will be for every additional data center as well. We will expand what is already the largest global Megapack power installation in the world,” Shotwell said.

“The installation will provide enough backup power to power the city of Memphis, and more than sufficient energy to power the town of Southaven, Mississippi where the data center resides. We will build new substations and invest in electrical infrastructure to provide stability to the area’s grid.”

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Tesla China teases Optimus robot’s human-looking next-gen hands

The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.

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Credit: Tesla China

A new teaser shared by Tesla’s China team appears to show a pair of unusually human-like hands for Optimus. 

The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.

As could be seen in the teaser image, the new version of Optimus’ hands features proportions and finger structures that look strikingly similar to those of a human hand. Their appearance suggests that they might have dexterity approaching that of a human hand.

If the image reflects a new generation of Optimus’ hands, it could indicate Tesla is continuing to refine one of the most critical components of its humanoid robot.

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Hands are widely viewed as one of the most difficult engineering challenges in robotics. For Optimus to perform complex real-world work, from manufacturing tasks to household activities, its hands would need to be the best in the industry.

Elon Musk has repeatedly described Optimus as Tesla’s most important long-term product. In posts on social media platform X, Musk has stated that Optimus could eventually become the first real-world Von Neumann machine.

In theory, a Von Neumann machine is a self-replicating system capable of building copies of itself using available materials. The concept was originally proposed by mathematician John von Neumann in the mid-20th century.

“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.

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If Optimus is expected to carry out complex work autonomously in the future, high levels of dexterity will likely be essential. This makes the development of advanced robotic hands a key step towards Musk’s long-term expectations for the product.

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