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Tesla CEO Elon Musk with India Prime Minister Narendra Modi Tesla CEO Elon Musk with India Prime Minister Narendra Modi

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Tesla, India talks stagnate as neither party is willing to budge on terms

India Prime Minister Narendra Modi visits the Tesla Fremont Factory in 2015.

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Tesla and Indian government officials have essentially reached a standstill as neither party is willing to budge from terms they feel are necessary to bring the electric automaker’s vehicles to the South Asian country.

Tesla has said for years that it would enter India as a market for its electric vehicles. Progress started to be made in 2021 when Tesla acquired several business licenses in India, but things have hit a roadblock in recent months, especially as Tesla is unwilling to commit to a Gigafactory facility unless it can test demand first. Indian officials are reluctant to roll back duties on imported vehicles so Tesla can determine whether the market would be an ideal place to build a factory that could potentially cost $1 billion or more.

Tesla cannot effectively test demand because the import duties would increase the cost of cars $40,000 and under by 40%. Anything over $40,000 is subject to a 100% tax, putting the cars out of the price range for many people.

However, Indian officials told Reuters that “they have been unconvinced by Tesla’s lobbying as the company has not yet shared any firm plan to invest in the country.” Tesla has not yet committed to any solidified investment, likely because the current government administration, run by Prime Minister Narendra Modi, is unwilling to lower import taxes that would allow a foreign company to test demand. The focus is only on domestic manufacturing, as a part of Modi’s “Make In India” plan from 2015 that aimed to boost local manufacturing.

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Tesla’s unwillingness to commit because of no real demand data, along with India’s requests for a formal commitment, has resulted in “a weird stalemate situation,” one insider also said in the report. “Things are not moving ahead (for Tesla),” they said.

Another source has stated that Tesla is open to sourcing its automotive components from local manufacturers and would eventually move toward manufacturing them internally. This would provide domestic companies supplier deals initially, and then contribute to workforce and labor growth as Tesla transitioned to a vertically integrated system in India after a few years of operation. One example of workforce growth that Tesla has contributed to is China, as Gigafactory Shanghai is expanding its Model Y line to 9,000 workers from 6,000. When the expansion is completed, 18,000 people will be employed at the Shanghai facility.

Even though Tesla is willing to utilize local suppliers early on, government officials are looking for a firm commitment. “If they do not want to invest anything here, how is that model going to work,” the source said. Additionally, this source stated that import duties being rolled back soon was “highly unlikely.”

Rumors of a potential meeting between Modi and CEO Elon Musk, who stated last week that Tesla was still working through “challenges” with India’s government, have circulated. A source did state that Tesla officials have met with India’s Tax and Customs department and Modi’s office in the past. Tesla officials have pushed for a meeting between Musk and Modi directly.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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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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Tesla dominates in the UK with Model Y and Model 3 leading the way

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Credit: Tesla China

Tesla is dominating in the United Kingdom so far through 2025, and with about two weeks left in the year, the Model Y and Model 3 are leading the way.

The Model Y and Model 3 are the two best-selling electric vehicles in the United Kingdom, which is comprised of England, Scotland, Wales, and Northern Ireland, and it’s not particularly close.

According to data gathered by EU-EVs, the Model Y is sitting at 18,890 units for the year, while the Model 3 is slightly behind with 16,361 sales for the year so far.

The next best-selling EV is the Audi Q4 e-tron at 10,287 units, lagging significantly behind but ahead of other models like the BMW i4 and the Audi Q6 e-tron.

The Model Y has tasted significant success in the global market, but it has dominated in large markets like Europe and the United States.

For years, it’s been a car that has fit the bill of exactly what consumers need: a perfect combination of luxury, space, and sustainability.

Both vehicles are going to see decreases in sales compared to 2024; the Model Y was the best-selling car last year, but it sold 32,610 units in the UK. Meanwhile, the Model 3 had reached 17,272 units, which will keep it right on par with last year.

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Tesla announces major milestone in the United Kingdom

Tesla sold 50,090 units in the market last year, and it’s about 8,000 units shy of last year’s pace. It also had a stronger market share last year with 13.2 percent of the sales in the market. With two weeks left in 2025, Tesla has a 9.6 percent market share, leading Volkswagen with 8 percent.

The company likely felt some impact from CEO Elon Musk’s involvement with the Trump administration and, more specifically, his role with DOGE. However, it is worth mentioning that some months saw stronger consumer demand than others. For example, sales were up over 20 percent in February. A 14 percent increase followed this in June.

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Tesla Insurance officially expands to new U.S. state

Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.

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Credit: Tesla Insurance

Tesla Insurance has officially expanded to a new U.S. state, its thirteenth since its launch in 2019.

Tesla has confirmed that its in-house Insurance program has officially made its way to Florida, just two months after the company filed to update its Private Passenger Auto program in the state. It had tried to offer its insurance program to drivers in the state back in 2022, but its launch did not happen.

Instead, Tesla refiled the paperwork back in mid-October, which essentially was the move toward initiating the offering this month.

Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.

It has expanded to new states since 2019, but Florida presents a particularly interesting challenge for Tesla, as the company’s entry into the state is particularly noteworthy given its unique insurance landscape, characterized by high premiums due to frequent natural disasters, dense traffic, and a no-fault system.

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Annual average premiums for Florida drivers hover around $4,000 per year, well above the national average. Tesla’s insurance program could disrupt this, especially for EV enthusiasts. The state’s growing EV adoption, fueled by incentives and infrastructure development, aligns perfectly with Tesla’s ecosystem.

Moreover, there are more ways to have cars repaired, and features like comprehensive coverage for battery damage and roadside assistance tailored to EVs address those common painpoints that owners have.

However, there are some challenges that still remain. Florida’s susceptibility to hurricanes raises questions about how Tesla will handle claims during disasters.

Looking ahead, Tesla’s expansion of its insurance program signals the company’s ambition to continue vertically integrating its services, including coverage of its vehicles. Reducing dependency on third-party insurers only makes things simpler for the company’s automotive division, as well as for its customers.

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Tesla Full Self-Driving gets sparkling review from South Korean politician

“Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about.”

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Credit: Soyoung Lee | X

Tesla Full Self-Driving got its first sparkling review from South Korean politician Lee So-young, a member of the country’s National Assembly, earlier this week.

Lee is a member of the Strategy and Finance Committee in South Korea and is a proponent of sustainable technologies and their applications in both residential and commercial settings. For the first time, Lee was able to utilize Tesla’s Full Self-Driving technology as it launched in the country in late November.

Her thoughts on the suite were complimentary to the suite, stating that “it drives just as well as most people do,” and that “it already feels like a completed technology.”

Her translated post says:

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“Finally, today I got to experience Tesla FSD in Seoul. Thanks to the Model S sponsored by JiDal Papa^^, I’m truly grateful to Papa. The route was from the National Assembly -> Mangwon Market -> Hongik University -> back to the National Assembly. Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about. Once it actually spreads into widespread use, I feel like our daily lives are going to change a lot. Even I, with my license gathering dust in a drawer, don’t see much reason to learn to drive a manual anymore.”

Tesla Full Self-Driving officially landed in South Korea in late November, with the initial launch being one of Tesla’s most recent, v14.1.4.

It marked the seventh country in which Tesla was able to enable the driver assistance suite, following the United States, Puerto Rico, Canada, China, Mexico, Australia, and New Zealand.

It is important to see politicians and figures in power try new technologies, especially ones that are widely popular in other regions of the world and could potentially revolutionize how people travel globally.

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