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Amid Tesla India’s entry plans, U.S. pushes for tariff-free car imports

The U.S. is pushing India to cut car import tariffs as part of a new trade deal, which could help Tesla finally break into the Indian market.

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Tesla India has made more strides lately compared to its previous attempts to enter the country. While Tesla India solidifies its entry plans, the United States is pushing for tariff-free car imports.

U.S. President Donald Trump and his administration want India to eliminate or significantly reduce car import tariffs as both nations negotiate a bilateral trade deal.

According to Reuter’s sources, India hesitates to completely eliminate its car import tariffs even though it is considering reductions.

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“The U.S. ask is for India to bring tariffs down to zero or negligible in most sectors, except agriculture,” noted one source.

Tesla India’s Role in Trump’s talks with India

India’s car import tariffs will be part of formal discussions with the Trump administration as the pair attempt to strike a bilateral trade deal. The trade deal between the U.S. and India will directly impact Tesla India.

Tesla India has been in the works for years, long before President Trump’s re-election. However, India’s tariffs on car imports have always been a sore spot, making Tesla hesitant to enter the market.

In 2023, Tesla allegedly proposed plans to invest billions in India, with talks of a new plant and even local battery production. Tesla’s investment plans seem to rely on India considering lower tariffs for imported vehicles.

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Last year, the Indian government reportedly planned to finalize a new import tax policy to incentivize Tesla and other foreign electric automakers to invest in the country. As of this writing, India has not formally implemented a new import tax policy.

President Trump and Elon Musk have criticized India’s high levies for imported cars. If nothing changes, the U.S. President has voiced plans to reciprocate India’s high taxes.

India is carefully considering the Trump administration’s proposal regarding its car import tariffs. It has not entirely ruled out agreeing to the proposal but plans to consult with local industries before announcing its final decision.

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Tesla looks keen to bring larger Model Y L to the U.S.

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Credit: Tesla

Tesla launched the slightly larger Model Y L in China last year, and it became a hit in no time. The longer wheelbase, larger interior, and slightly more forgiving legroom area in the Model Y L became a sought-after possibility for U.S. buyers, who have been begging the company for a larger SUV.

Now, Tesla needs it more than ever, especially considering the Model X was discontinued alongside its Model S sibling earlier this year. It looks to be more likely than ever, and based on recent reports, it will fall in line with CEO Elon Musk’s prediction that it would arrive in the United States in late 2026.

Recent reports from Forbes and Not a Tesla App both have indicated Tesla plans to bring the Model Y L to the U.S. this year. The reports cite “credible sources,” and an analyst from AutoForecast Solutions named Sam Fiorani stated that the car would enter production later this year.

Fiorani said:

“China, Australia, and India are supplied by the factory in China, which will not supply vehicles to the U.S. Production of the Model Y L is expected to begin in the U.S. in September, which will lead to sales beginning before the end of 2026.”

Production would take place at Gigafactory Texas.

Additionally, a few Model Y L units have been spotted under wraps in the United States, giving more indication that Tesla plans to bring the vehicle to the U.S. When Tesla is close to launching a vehicle in the U.S., it is not uncommon to see these models with the exact car covers that you see below:

It makes sense, especially considering Musk hinted the Model Y L would make it to the U.S. in late 2026, but it was up in the air. The CEO said the advent of self-driving might not warrant a larger SUV coming to the U.S. market specifically.

The problem is, consumers do not want to hear that. They love Tesla’s tech, FSD, and other features, but they need more space for growing families. The Model X is gone, and the most anyone can fit in a Tesla right now is seven people in the seven-seat Model Y. That back row is truly only large enough to fit small children comfortably.

Tesla fans have requested a full-size SUV, and the company has made some hints that it could be in the plans.

The Model Y and Model Y L differ noticeably in size, with the Model Y L being a stretched, six-seat variant designed for great interior room. The Standard Model Y measures approximately 4,790mm in length, 1,982 mm in width with the mirrors folded, 1,624mm in height, and 2,890mm in wheel base.

In contrast, the Model Y L extends to be about 4,969–4,976mm long (roughly 179mm or 7 inches longer), stands 1,668mm tall (+44mm), and features a significantly longer 3,040 mm wheelbase (+150mm), while maintaining the same width.

This elongation primarily benefits rear passenger space and enables a 2+2+2 seating layout with captain’s chairs, though it slightly reduces maximum cargo capacity behind the rearmost seats and adds a bit of overall mass and turning radius. The result is a more spacious family hauler that still shares the core footprint and agile character of the original Model Y.

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Tesla Cybercab stands to gain from new Trump autonomy rules

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Credit: Teslarati

Tesla Cybercab stands to gain from new rules that the Trump Administration is aiming to enforce on autonomous vehicles. On Thursday, NHTSA, under the Trump Administration’s U.S. Department of Transportation, commenced rulemaking on the Federal Motor Vehicle Safety Standards (FMVSS).

This effort aims to eliminate the mandate for manual brake pedals in vehicles that are designed to be driven exclusively by automated driving systems. This would impact the Tesla Cybercab, which the company has stated would operate without a steering wheel or pedals.

Tesla Cybercab launch is imminent after latest sighting at Giga Texas

The Trump Administration is looking to revise FMVSS No. 135, which requires standard braking systems on light-duty vehicles.

Currently, the regulation requires light-duty cars to use traditional manual braking systems that allow operators to slow the vehicle. With the advent of self-driving in the U.S., these regulations need updating, and these are the changes that could come to FMVSS No. 135:

  • Removes requirements for hand- or foot-operated brake controls for vehicles designed never to be operated by a human. Existing rules still apply to AVs that retain manual controls.
  • All subject vehicles must still meet the same stopping distance performance criteria via alternative testing procedures.
  • While this update ensures AVs can physically stop when commanded, NHTSA is separately developing safety performance requirements for AVs in real-world driving scenarios.
  • NHTSA will continue to use its broad defect enforcement authority to investigate unsafe ADS behavior and oversee recalls.

As autonomy becomes a greater part of passenger travel, these types of rule adjustments will be more than reasonable. It will give manufacturers the ability to self-certify their vehicles and avoid any red tape that could ultimately delay the deployment of these vehicles.

Administrators are also incredibly excited about the opportunity to play a role in the advancement of self-driving vehicles.

“We are at the cusp of the greatest technological revolution in vehicle technology since the innovation of the Model T,” NHTSA Administrator Jonathan Morrison said. “If we want America to lead the way, we have to reimagine our regulatory framework. That’s why under Secretary Sean Duffy’s AV Framework, NHTSA is tearing down pointless barriers to innovative designs while strengthening the fundamental safety requirements that matter and holding AV developers accountable for safe performance.”

The Cybercab entered mass production at Gigafactory Texas in April. Tesla ultimately plans to push the vehicle into its Robotaxi fleet, potentially when frameworks like these are established.

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Tesla plans production boost at Giga Berlin following rebound in Europe

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Credit: Andre Thierig | X

Tesla plans to boost production at its Gigafactory Berlin plant in Germany following a sharp rebound in sales and demand in Europe after a softer 2025.

The plans put Tesla in a better position to compete with strengthening companies in Europe and potentially other markets; demand indicators show Tesla is much better off than in 2025.

Last year was a tough year for Tesla in terms of overall demand in Europe. The company produced over 200,000 vehicles at the German plant last year, a soft figure compared to the 375,000 vehicles Tesla lists as its current capacity at the factory.

Tesla’s overall European sales dropped significantly last year due to a variety of factors. However, sales are rebounding, and demand is strong once again, and only getting stronger. Tesla is now planning to bump production of Model Y vehicles at Giga Berlin upward by about 20 percent. It will also bring 1,000 new jobs to the plant.

Tesla confirmed the details of its planned production expansion in Germany this morning. It is a strategy to keep up with strengthening demand.

In Q1, Tesla saw a record 61,000 vehicles produced at Giga Berlin. European registrations rebounded sharply, with Model Y seeing 117 percent increases in March 2026 compared to last year. Germany alone saw stark increases, with a quadrupling in registrations to 9,252 units.

This trend continued in other key European markets, including France, Denmark and Sweden. Tesla registrations were up over 46 percent in some of these markets, and Model Y continued its trend as a top BEV in the market.

Demand has been recovering strongly in 2026, giving Tesla a reason to expand production efforts at the factory. These increases signal management’s confidence in sustained or growing European pull for Berlin-built vehicles.

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