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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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(Credit: everythingtesla/Instagram)

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.

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

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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.

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.

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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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Elon Musk

Elon Musk and Tesla AI Director share insights after empty driver seat Robotaxi rides

The executives’ unoccupied tests hint at the rapid progress of Tesla’s unsupervised Robotaxi efforts.

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Ashok Elluswamy

Tesla CEO Elon Musk and AI Director Ashok Elluswamy celebrated Christmas Eve by sharing personal experiences with Robotaxi vehicles that had no safety monitor or occupant in the driver’s seat. Musk described the system’s “perfect driving” around Austin, while Elluswamy posted video from the back seat, calling it “an amazing experience.”

The executives’ unoccupied tests hint at the rapid progress of Tesla’s unsupervised Robotaxi efforts.

Elon and Ashok’s firsthand Robotaxi insights

Prior to Musk and the Tesla AI Director’s posts, sightings of unmanned Teslas navigating public roads were widely shared on social media. One such vehicle was spotted in Austin, Texas, which Elon Musk acknowleged by stating that “Testing is underway with no occupants in the car.” 

Based on his Christmas Eve post, Musk seemed to have tested an unmanned Tesla himself. “A Tesla with no safety monitor in the car and me sitting in the passenger seat took me all around Austin on Sunday with perfect driving,” Musk wrote in his post.

Elluswamy responded with a 2-minute video showing himself in the rear of an unmanned Tesla. The video featured the vehicle’s empty front seats, as well as its smooth handling through real-world traffic. He captioned his video with the words, “It’s an amazing experience!”

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Towards Unsupervised operations

During an xAI Hackathon earlier this month, Elon Musk mentioned that Tesla owed be removing Safety Monitors from its Robotaxis in Austin in just three weeks. “Unsupervised is pretty much solved at this point. So there will be Tesla Robotaxis operating in Austin with no one in them. Not even anyone in the passenger seat in about three weeks,” he said. Musk echoed similar estimates at the 2025 Annual Shareholder Meeting and the Q3 2025 earnings call.

Considering the insights that were posted Musk and Elluswamy, it does appear that Tesla is working hard towards operating its Robotaxis with no safety monitors. This is quite impressive considering that the service was launched just earlier this year.

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NVIDIA Director of Robotics: Tesla FSD v14 is the first AI to pass the “Physical Turing Test”

After testing FSD v14, Fan stated that his experience with FSD felt magical at first, but it soon started to feel like a routine.

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Credit: Grok Imagine

NVIDIA Director of Robotics Jim Fan has praised Tesla’s Full Self-Driving (Supervised) v14 as the first AI to pass what he described as a “Physical Turing Test.”

After testing FSD v14, Fan stated that his experience with FSD felt magical at first, but it soon started to feel like a routine. And just like smartphones today, removing it now would “actively hurt.”

Jim Fan’s hands-on FSD v14 impressions

Fan, a leading researcher in embodied AI who is currently solving Physical AI at NVIDIA and spearheading the company’s Project GR00T initiative, noted that he actually was late to the Tesla game. He was, however, one of the first to try out FSD v14

“I was very late to own a Tesla but among the earliest to try out FSD v14. It’s perhaps the first time I experience an AI that passes the Physical Turing Test: after a long day at work, you press a button, lay back, and couldn’t tell if a neural net or a human drove you home,” Fan wrote in a post on X. 

Fan added: “Despite knowing exactly how robot learning works, I still find it magical watching the steering wheel turn by itself. First it feels surreal, next it becomes routine. Then, like the smartphone, taking it away actively hurts. This is how humanity gets rewired and glued to god-like technologies.”

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The Physical Turing Test

The original Turing Test was conceived by Alan Turing in 1950, and it was aimed at determining if a machine could exhibit behavior that is equivalent to or indistinguishable from a human. By focusing on text-based conversations, the original Turing Test set a high bar for natural language processing and machine learning. 

This test has been passed by today’s large language models. However, the capability to converse in a humanlike manner is a completely different challenge from performing real-world problem-solving or physical interactions. Thus, Fan introduced the Physical Turing Test, which challenges AI systems to demonstrate intelligence through physical actions.

Based on Fan’s comments, Tesla has demonstrated these intelligent physical actions with FSD v14. Elon Musk agreed with the NVIDIA executive, stating in a post on X that with FSD v14, “you can sense the sentience maturing.” Musk also praised Tesla AI, calling it the best “real-world AI” today.

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Tesla AI team burns the Christmas midnight oil by releasing FSD v14.2.2.1

The update was released just a day after FSD v14.2.2 started rolling out to customers. 

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Credit: Grok

Tesla is burning the midnight oil this Christmas, with the Tesla AI team quietly rolling out Full Self-Driving (Supervised) v14.2.2.1 just a day after FSD v14.2.2 started rolling out to customers. 

Tesla owner shares insights on FSD v14.2.2.1

Longtime Tesla owner and FSD tester @BLKMDL3 shared some insights following several drives with FSD v14.2.2.1 in rainy Los Angeles conditions with standing water and faded lane lines. He reported zero steering hesitation or stutter, confident lane changes, and maneuvers executed with precision that evoked the performance of Tesla’s driverless Robotaxis in Austin.

Parking performance impressed, with most spots nailed perfectly, including tight, sharp turns, in single attempts without shaky steering. One minor offset happened only due to another vehicle that was parked over the line, which FSD accommodated by a few extra inches. In rain that typically erases road markings, FSD visualized lanes and turn lines better than humans, positioning itself flawlessly when entering new streets as well.

“Took it up a dark, wet, and twisty canyon road up and down the hill tonight and it went very well as to be expected. Stayed centered in the lane, kept speed well and gives a confidence inspiring steering feel where it handles these curvy roads better than the majority of human drivers,” the Tesla owner wrote in a post on X.

Tesla’s FSD v14.2.2 update

Just a day before FSD v14.2.2.1’s release, Tesla rolled out FSD v14.2.2, which was focused on smoother real-world performance, better obstacle awareness, and precise end-of-trip routing. According to the update’s release notes, FSD v14.2.2 upgrades the vision encoder neural network with higher resolution features, enhancing detection of emergency vehicles, road obstacles, and human gestures.

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New Arrival Options also allowed users to select preferred drop-off styles, such as Parking Lot, Street, Driveway, Parking Garage, or Curbside, with the navigation pin automatically adjusting to the ideal spot. Other refinements include pulling over for emergency vehicles, real-time vision-based detours for blocked roads, improved gate and debris handling, and Speed Profiles for customized driving styles.

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