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

Credit: Tesla

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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):

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“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.

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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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SpaceX makes history, catching Starship from orbit for the first time

SpaceX caught Starship’s upper stage with its launch tower for the first time on Saturday.

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Ship 42 fires its engines as it descends toward the Starbase launch tower’s chopstick arms, moments before SpaceX caught a Starship upper stage for the first time on Flight 15. (Credit: SpaceX)
Ship 42 fires its engines as it descends toward the Starbase launch tower’s chopstick arms, moments before SpaceX caught a Starship upper stage for the first time on Flight 15. (Credit: SpaceX)

SpaceX caught a Starship upper stage with its launch tower for the first time on Saturday, bringing Ship 42 back to Starbase after roughly 22 and a half hours in orbit on Flight 15. No company has ever returned the upper stage of an orbital rocket to its launch site and caught it.

Ship 42 lifted off Friday evening on top of Booster 22, reached orbit and deployed all 26 of its Starlink V3 satellites. Three of those satellites carried cameras to photograph the ship’s heat shield, and SpaceX said the imagery showed it was in good shape for reentry, allowing controllers to pass on a backup splashdown option overnight. By Saturday morning, SpaceX posted on X that “Pad and tower systems are go for catch.” After about 14 orbits, the ship fired its engines to leave orbit, came back through the atmosphere and was caught by the tower’s chopstick arms.

 

The catch salvages a flight that started with a setback. Super Heavy did not make it back to the tower on Friday. “We were initially go for a catch, but in the later stages of the coast, the booster aborted itself for a GNC issue that it detected and that put it into its landing offshore,” SpaceX’s Dan Huot said. The booster hovered over the Gulf of Mexico before its flight termination system triggered and it came down in the water.

Elon Musk said Saturday that the booster ran short on propellant because its engines slightly underperformed. The fix, he wrote, is better engine consistency with Raptor V3.2 and a flight software change to cut the engines “about one second earlier” so enough fuel is left for the return. “This booster loss does not change our timeline to reach high volume, fully reusable Starship flights,” Musk added.

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The ship is the harder half of that goal, and the one SpaceX had never recovered. Super Heavy has now been caught three times, most recently in March 2025, while every previous ship ended in the ocean or was lost. Falcon 9 lands its boosters routinely but throws its upper stage away on every launch. Musk described a full Starship recovery on SpaceX’s third quarter earnings call as a “profound technology milestone,” and Saturday’s catch shows the hardest piece of it can work.

That piece matters for nearly everything SpaceX is planning. Reusable ships are what make the economics of launching Starlink V3 satellites at scale work, along with the Starmind orbital compute constellation. NASA’s Artemis lunar lander also depends on refilling Starships in orbit with repeated tanker flights, which requires vehicles that can fly again quickly. Musk has said he expects Starship to reach a weekly launch cadence in the first half of 2027.

Flight 15 also improved on the last Starship mission in September, which reached orbit but ended after about three hours with a Pacific splashdown when some engines shut down. Before this flight, SpaceX had shown an animation of the ship catch during its earnings webcast, and Musk put the odds of pulling it off on the first try at “more likely than not,” as Teslarati reported.

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Tesla Cybercab ownership will come with plenty of strings attached

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Credit: Tesla

Tesla’s long-promised Cybercab is finally available for personal purchase, at least for a select few in the Austin area. But it’s far from a straightforward ownership experience.

The $29,990 price tag comes with a stack of restrictions that redefine what “owning” the vehicle actually means. The two-seat, steering-wheel-free Robotaxi, previously limited to Tesla’s own fleet, now carries contractual terms that limit where it can go, how it can be used, and whether it can even move without an active paid subscription.

Opening Night of Orders

Late on November 13, Tesla announced that select customers were being invited to order a Cybercab for personal use.

Tesla Cybercab goes on sale for $29,990, slated for December deliveries

The estimated purchase price is $29,990 before taxes, paired with a non-refundable $1,000 deposit and an estimated December 2026 delivery in Austin, Texas. The first month of the required :Autonomy Subscription,” priced at $299 per month is included.

After that, the vehicle needs an active subscription to operate at all. The announcement confirmed that customer sales had begun, albeit on an invite-only basis rather than a public order page.

The Fine Print for Buyers

For those invited to order, the agreements (Cybercab Order Agreement, Terms of Use, and Autonomy Subscription Agreement) impose significant constraints. Major points include:

  • A mandatory Autonomy Subscription (currently listed at $299 per month on the order screen, first month included) is required; without it, the Cybercab will not operate.
  • Personal, non-commercial use only; ride-hailing, Robotaxi network participation, delivery, or rental requires separate written authorization or product enablement from Tesla.
  • Operation restricted to Tesla-enabled Robotaxi geofences and supported service areas, which the company can expand, shrink, or alter; the vehicle may be technologically prevented from operating outside them.
  • No unauthorized modifications (including wraps, window tint, or wheel changes) without Tesla or an authorized provider.
  • Restricted resale and transfer: written permission required, with contractual damages of at least $50,000 (or full transaction value if higher) for unauthorized sales; Tesla also reserves repurchase rights at a company-determined fair market value, with the owner covering return costs.
  • Safety or improper-use “strikeouts” (three or more) can trigger a one-week suspension of autonomous features without prorated refund.
  • Owners remain responsible for insurance, registration, charging, parking, and general cleaning; the subscription covers certain maintenance items such as tires, windshields, filters, and camera cleaning, plus limited towing.
  • Manual controls on the touchscreen allow only short-distance movement up to about 2 mph and require a valid driver’s license; they are not for public-road driving.

Why These Terms Might Exist

Tesla’s approach prioritizes control over a vehicle designed without traditional human controls and intended primarily as transport-as-a-service, something that Musk has hinted toward for some time now. Restricting commercial use and modifications could be as much of a software integrity, safety, and data collection effort as it is a safety effort.

Fleet consistency could also be in regulatory scrutiny early on in the Cybercab’s days of public operation.

The subscription model generates ongoing revenue beyond the low vehicle price and ensures the car remains connected and updatable, something that will keep the Cybercab as safe as possible as new updates roll out.

Buyback and resale limits reduce the risk of vehicles circulating outside Tesla’s operational and service ecosystem.

It apperas that personal ownership is secondary to the broader Robotaxi network strategy, as Musk has previously stated that the vast majority of Cybercabs would remain Tesla-owned.

Pickup Locations and Musk’s Pricing View

Initial deliveries are estimated for Austin, but personal vehicles are able to operate in any of Tesla’s Robotaxi geofences:

Those who have been invited to order can also have their personal Cybercab delivered to numerous locations in Texas, including:

  • Austin
  • Dallas
  • Houston
  • San Antonio
  • Fort Worth

As far as the monthly “Autonomy Subscription,” it appears Musk already wants it to be low. He acknowledged last night on X that the subscription price is too high. Along with detailing that the Cybercab will be available nationwide as regulatory approval is received, Musk said the monthly fee should match the cost of FSD and Premium Connectivity, which is about $115 per month.

The launch marks a milestone for unsupervised personal autonomous vehicles, but the fine print makes clear that buyers are purchasing a highly constrained asset whose usefulness is tightly bound to Tesla’s software, service network, and geographic approvals.

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Tesla Cybercab goes on sale for $29,990, slated for December deliveries

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Credit: Tesla

Tesla has officially put the Cybercab up for sale, revealing a bargain price and a $299 per month “Autonomy Subscription” that could hit customer hands as soon as December.

The offer requires a $299 monthly Autonomy Subscription, with the first month included in the purchase price, along with a $1,000 non-refundable order deposit. Tesla’s ordering interface shows deliveries targeted for Austin, Texas.

Tesla says that the Cybercab is making transportation more efficient, affordable and accessible than ever before, and that buyers can order their own Cybercab for personal use.

The Cybercab is Tesla’s dedicated robotaxi, a gold-finished, two-passenger vehicle without a steering wheel or pedals, designed from the outset for unsupervised autonomous operation. It has been in limited Robotaxi service in Austin since September 2026, operating alongside Tesla’s larger fleet of Model Y vehicles.

Production takes place at Gigafactory Texas, which launched earlier this year. Tesla has stated for some time that it planned to put Cybercabs on sale by the end of the year, and it looks like they will come through on that promise if everything goes according to plan.

The Autonomy Subscription is mandatory for the vehicle to operate because it is void of a steering wheel and pedals. Tesla notes that the subscription and regular vehicle maintenance are required, indicating that personal owners will depend on the company’s software and service infrastructure rather than traditional ownership models.

One month of the subscription is included with purchase and subsequent months are billed separately until canceled.

This limited personal-sales opening marks a shift from Tesla’s earlier emphasis on fleet and transport-as-a-service operations. During the Q3 2026 Earnings Call, executives indicated that the vast majority of Cybercabs would remain Tesla-owned and used for rideshare service, while still aiming to place some vehicles with customers by year-end.

Elon Musk has previously targeted a price below $30,000, which was a huge point of emphasis for the Cybercab being the central point of Tesla’s “transportation-as-a-service” model.

Availability remains restricted to invited customers rather than a public order page, and the initial deliveries are expected only in the Austin area where unsupervised Robotaxi operations are already active. Buyers will need to accept the geographic and operational constraints of current autonomous deployment, as the vehicle cannot be driven manually outside supported zones.

The move gives a small number of early buyers the chance to own Tesla’s dedicated autonomous vehicle at the long-discussed sub-$30,000 price point, while the bulk of production continues to support the company’s expanding Robotaxi network.

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