News
Tesla India plans take a hit as Minister shoots down talks of import tax reduction
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.
If Tesla is able to succeed with imported vehicles, then a factory in India is quite likely.
— Elon Musk (@elonmusk) July 23, 2021
“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):
“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.
News
Tesla dispels reports of ‘sales suspension’ in California
“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.”
Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”
On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”
Tesla enters interesting situation with Full Self-Driving in California
Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”
The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.
However, Tesla said that its sales operations in California “will continue uninterrupted.”
It confirmed this in an X post on Tuesday night:
This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.
— Tesla North America (@tesla_na) December 17, 2025
The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.
One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.
Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.
This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”
News
New EV tax credit rule could impact many EV buyers
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date. However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
Tesla owners could be impacted by a new EV tax credit rule, which seems to be a new hoop to jump through for those who benefited from the “extension,” which allowed orderers to take delivery after the loss of the $7,500 discount.
After the Trump Administration initiated the phase-out of the $7,500 EV tax credit, many were happy to see the rules had been changed slightly, as deliveries could occur after the September 30 cutoff as long as orders were placed before the end of that month.
However, there appears to be a new threshold that EV buyers will have to go through, and it will impact their ability to get the credit, at least at the Point of Sale, for now.
Delivery must be completed by the end of the year, and buyers must take possession of the car by December 31, 2025, or they will lose the tax credit. The U.S. government will be closing the tax credit portal, which allows people to claim the credit at the Point of Sale.
🚨UPDATE: $7,500 Tax Credit Portal “Closes By End of Year”.
This is bad news for pending Tesla buyers (MYP) looking to lock in the $7,500 Tax Credit.
“it looks like the portal closes by end of the year so there be no way for us to guarantee the funds however, we will try our… pic.twitter.com/LnWiaXL30k
— DennisCW | wen my L (@DennisCW_) December 15, 2025
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date.
However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
If not, the order can still go through, but the buyer will not be able to claim the tax credit, meaning they will pay full price for the vehicle.
This puts some buyers in a strange limbo, especially if they placed an order for the Model Y Performance. Some deliveries have already taken place, and some are scheduled before the end of the month, but many others are not expecting deliveries until January.
Elon Musk
Elon Musk takes latest barb at Bill Gates over Tesla short position
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
Elon Musk took his latest barb at former Microsoft CEO Bill Gates over his short position against the company, which the two have had some tensions over for a number of years.
Gates admitted to Musk several years ago through a text message that he still held a short position against his sustainable car and energy company. Ironically, Gates had contacted Musk to explore philanthropic opportunities.
Elon Musk explains Bill Gates beef: He ‘placed a massive bet on Tesla dying’
Musk said he could not take the request seriously, especially as Gates was hoping to make money on the downfall of the one company taking EVs seriously.
The Tesla frontman has continued to take shots at Gates over the years from time to time, but the latest comment came as Musk’s net worth swelled to over $600 billion. He became the first person ever to reach that threshold earlier this week, when Tesla shares increased due to Robotaxi testing without any occupants.
Musk refreshed everyone’s memory with the recent post, stating that if Gates still has his short position against Tesla, he would have lost over $10 billion by now:
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
— Elon Musk (@elonmusk) December 17, 2025
Just a month ago, in mid-November, Musk issued his final warning to Gates over the short position, speculating whether the former Microsoft frontman had still held the bet against Tesla.
“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk said. This came in response to The Gates Foundation dumping 65 percent of its Microsoft position.
Tesla CEO Elon Musk sends final warning to Bill Gates over short position
Musk’s involvement in the U.S. government also drew criticism from Gates, as he said that the reductions proposed by DOGE against U.S.A.I.D. were “stunning” and could cause “millions of additional deaths of kids.”
“Gates is a huge liar,” Musk responded.
It is not known whether Gates still holds his Tesla short position.
Tesla dispels reports of ‘sales suspension’ in California
New EV tax credit rule could impact many EV buyers
