Connect with us
tesla s3xy tesla s3xy

News

Tesla India plans take a hit as Minister shoots down talks of import tax reduction

Credit: Tesla

Published

on

Tesla’s entrance into India took a giant step backward as Government officials shot down the potential for import duty reductions on Monday. Attempting to enter the Indian automotive market with its sustainable vehicles, Tesla has petitioned for lower import taxes before committing to a Gigafactory in India. Still, the automaker and the government seem to be having trouble working on an agreement that would keep both parties interested.

After applying for and receiving two business licenses in India, Tesla seemed to be working toward an imminent entrance into the market. Rumors of a potential Gigafactory India have echoed through the community of well-known followers of Elon Musk, but the Tesla CEO shot down any potential of the automaker establishing production lines in the country in July.

Elon Musk: If Tesla can be successful with imports, India Gigafactory “likely”

“If Tesla is able to succeed with imported vehicles, then a factory in India is quite likely,” Musk Tweeted on July 23rd. Essentially, this statement eliminated any potential for a Tesla Gigafactory in India if the automaker could not first test demand for its products in the country. A smart move financially, Tesla spends hundreds of millions, even billions of dollars on production facilities. It would be a big gamble for the young and quickly-charging automaker to establish a full-blown residency in India without any sort of real-world data hinting toward robust demand. The government is willing to let import duties be lightened to 40%, as long as Tesla commits to building a factory in India at some point. This requirement throws a wrench into Tesla’s plans, as it is not willing to agree to these terms currently.

“No such proposal is under consideration”: Minister

Now, Minister Krishan Pal Gurjar says that there is no talk of the government considering a reduction of import duties. On Monday, he told Parliament (via Bloomberg):

Advertisement
-

“No such proposal is under consideration in Ministry of Heavy Industries.”

Government ministries are currently run under Prime Minister Narendra Modi, who has emphasized tremendous support for local manufacturing efforts. The government, at this time, seems unwilling to consider reduced import duties or Tesla’s import plans at all because local manufacturing has taken priority.

India is not a country with a robust history of electrification, either. EVs accounted for less than 1% of annual car sales, despite being Asia’s third-largest country. Additionally, EVs are not in heavy demand in India due to higher production costs and minimal charging infrastructure, Maruti Suzuki India Ltd., Chairman R.C. Bhargava said in an annual report released earlier today. “Unfortunately, the technology presently available leads to electric cars being produced at a cost much higher than the conventional cars. This, along with the lack of charging infrastructure, makes it very difficult to sell electric cars to people who can only afford small cars.”

Import Duties are Getting in the Way

Imports are a tough thing to get by for consumers in India. Because of the heavy import duties the country has applied on vehicles, many consumers are unwilling to spend what the tax adds on to the price of the car. For vehicles under $40,000, import duties are 60%. Any car that costs more than that is subject to a 100% tax, doubling the price of the car.

This has been perhaps Tesla’s only barrier for entering the market as a vehicle manufacturer without building a factory there. Tesla already could export vehicles from Giga Shanghai to India, but few are willing to pay the massive price tag that comes with the car due to the duties. It is unknown what Tesla will do moving forward, but the automaker and the Indian government seem to be playing a game of chicken, seeing who will make the give up potential requests to move toward a deal.

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.

Advertisement
-

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

Advertisement
Comments

News

Tesla looks to expand into new Asian market, strengthening presence

Published

on

Credit: Tesla Asia | X

Tesla is looking to expand into a new Asian market, strengthening its presence in a region that has been bullish on electric vehicles as a whole.

Tesla officially filed to establish a subsidiary of its business in Vietnam, a report from Reuters suggests. Tesla named the entity “Tesla Motors Vietnam Limited Liability Company.”

The planned entrance into the Vietnamese market is a good sign and move for Tesla, as it has become one of the fastest-growing EV markets in Southeast Asia. It is already among the leaders in the region in both volume and electrification rate. In the first half of this year, Vietnam led Southeast Asia in battery-electric passenger car sales at about 116,000 units, up about 71 percent year over year.

Currently, Vietnamese EV drivers rely on VinFast’s V-Green network, which has about 150,000 ports, but these are primarily reserved for VinFast vehicles. Public third-party charging is fragmented and unreliable for those who do not own chargers that are dedicated to a certain manufacturer’s vehicles.

Tesla has had mixed results in Asia as a whole, and as China remains the core part of its story in Asia, the company is evidently working on expanding its footprint on the continent. Tesla’s domestic retail deliveries fell about 12 percent year over year through the first eight months of 2026.

Model Y remains a standout individual product, holding its position as one of, if not the, best-selling vehicles in the world. However, Model 3 has been weaker than it has been in past years.

Advertisement
-

Gigafactory Shanghai, the company’s Chinese production facility, still performs very well. Wholesale volumes in terms of exports have more than doubled and now exceed domestic retail sales; Giga Shanghai builds vehicles for Europe, South Korea, Japan, Australia, and other markets. South Korea has been an explicit bright spot, with registrations doubling year-to-date and Tesla frequently appearing as the top imported brand.

Tesla just did something in South Korea that no foreign carmaker has ever done

Tesla’s entrance into Vietnam signals a broader effort to take over the Asian market and grab more market share from rivals.

Continue Reading

Elon Musk

Elon Musk’s companies made up with Apple but OpenAI still on the hook

Elon Musk’s X Corp and SpaceXAI dropped their Apple antitrust suit, leaving OpenAI as defendant.

Published

on

By

X Corp and SpaceXAI, Elon Musk’s social platform and AI venture, have dropped Apple from the antitrust lawsuit that they filed against the iPhone maker and OpenAI last year. In a filing in the U.S. District Court for the Northern District of Texas, attorneys for X and SpaceXAI moved to dismiss the Apple portion of the case, first reported by Reuters. The filing does not explain why the companies are dropping Apple or say whether a settlement was reached.

X and SpaceXAI say they intend to keep pursuing the case against OpenAI, which remains a defendant. That resolves the dispute with one company while leaving the core allegation intact against the other, with no public accounting of what changed in between.

The lawsuit dates to August 2025, when xAI and X sued Apple and OpenAI, arguing that Apple’s decision to make ChatGPT the only generative AI chatbot built into iOS gave OpenAI an unfair structural advantage. The complaint claimed ChatGPT controlled roughly 80 percent of the chatbot market at the time, while Grok held only a few percent. It sought billions of dollars in damages and asked the court to unwind the arrangement.

Elon Musk’s xAI and X file antitrust suit against Apple and OpenAI over AI exclusivity

The filing followed weeks of Musk publicly complaining that Grok and X weren’t appearing in Apple’s “Must Have” App Store section, though Grok ranked second in the Productivity category and X ranked first in News at the time. He accused Apple of “playing politics” and warned of immediate legal action before following through days later.

Apple and OpenAI tried to get the case thrown out, but a federal judge denied both motions in November, ruling the dispute was better suited to summary judgment than an early dismissal. That decision sent the case into discovery, which is presumably what led to Monday’s filing.

Advertisement
-

The timing is notable given how Musk’s sentiment toward Apple has shifted, with Musk noting that he was open to letting Grok power a revamped Siri after a user suggested Apple replace its aging assistant with xAI’s model.

xAI, the AI venture Musk folded into X Corp last year, has since combined with SpaceX under the SpaceXAI brand. That structure now puts X, Grok and SpaceX’s rocket and satellite businesses under one roof as Musk pushes his AI ambitions beyond chatbots.

OpenAI remains the sole defendant going forward, and Musk’s companies have not said if there’s any changes to those original claims. Apple and OpenAI did not immediately respond to requests for comment on the filing.

Advertisement
-
Continue Reading

News

Why SpaceX is finishing another space-internet system that isn’t Starlink

SpaceX launched three final O3b mPower satellites Sunday, finishing a lesser known SES satellite network.

Published

on

By

SpaceX had an 87 minute window opening at 2:49 p.m. Eastern on Sunday to fly a Falcon 9 out of Cape Canaveral carrying the final three satellites for SES’s O3b mPower constellation, a project that has taken more than a decade to finish since Boeing and SES first signed SpaceX on for the work.

Unlike the thousands of Starlink satellites SpaceX has stacked into orbit over the years, O3b mPower flies in a different neighborhood entirely. The three new satellites, tagged F11, F12 and F13, are headed for medium Earth orbit at roughly 5,000 miles up, more than ten times higher than Starlink’s shell around 340 miles but still a small fraction of the 22,000 miles where old school geostationary satellites sit. That middle position is the whole point, because a satellite that far out needs far fewer siblings to blanket the globe than a low orbit constellation does. Essentially, SES only needed 13 satellites total to build a network offering quick, steady service that used to require thousands of spacecraft.

With most people having heard plenty about Starlink and almost nothing about O3b mPower, SES and SpaceX already blend the two networks for some customers. Both SpaceX and SES sell satellite broadband, but they’re aimed at different buyers. Starlink is built for volume, direct to consumers, RVs, homes, small businesses, plus a growing aviation and maritime business. O3b mPower skips consumers entirely and sells enterprise grade connectivity to airlines, cruise lines, offshore energy operators, telecoms needing backhaul, and governments, priced and provisioned more like a dedicated circuit.

A 2023 partnership lets cruise ships combine Starlink’s speed with O3b mPower’s steady capacity depending on what a ship needs at a given moment. Sunday’s completed 13 satellite constellation effectively finishes the medium orbit half of that pairing, years after.

Sunday’s mission was already a something on SpaceX’s manifest well before O3b mPower entered the picture. This flight marked its 29th trip to orbit, a history that includes two crewed Axiom missions, the European Space Agency’s Euclid telescope and 22 separate Starlink batches. SpaceX has landed boosters on the droneship A Shortfall of Gravitas so often that Sunday’s touchdown attempt, if it went as planned, was set to be the 661st successful Falcon booster landing to date.

For a company that pushed the Starlink constellation past 11,000 satellites back in August, almost entirely through bulk launches from California, Sunday’s flight was a reminder that SpaceX’s schedule still has room for someone else’s satellites too. SES gets a finished network built for a narrower set of customers, and Falcon 9 gets one more line on an already long resume.

Advertisement
-
Continue Reading