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Tesla’s international limbo has governments seeking alternatives, but holding onto hope
Tesla’s international limbo with expanding its manufacturing presence outside of the United States more aggressively has left various governments seeking alternatives.
However, some still seem to be holding onto hope that Tesla, a leading force in the global electric vehicle market, will invest in their territories.
Tesla has been looking for its next location for an international gigafactory. For years, Tesla has hinted that it will build in India, but import duties and other complications have effectively delayed these efforts.
The company then completely committed to Gigafactory Mexico after choosing Nuevo Leon as its location and slotting a large land plot as the location of its new production plant.
But things got complicated as CEO Elon Musk backed Donald Trump for President; his policies on foreign manufacturing complicated Tesla’s commitment to Mexico. India truly was not in the scope of this issue, especially as it aimed to build cars for its market and others nearby.
“We’re currently on pause on Giga Mexico. I think we need to see just where things stand after the election…Trump has said that he will put heavy tariffs on vehicles produced in Mexico, so it doesn’t make sense to invest a lot in Mexico if that is going to be the case. So we will kind of need to see how things play out politically.”
With Trump winning the election, Mexico is likely still on an indefinite hold. India seems to be coming to terms with the fact that Tesla is unlikely to expand there as well, and it is looking for alternatives.
A new report from Reuters states that India plans to expand EV incentives to automakers who will build vehicles at factories that are already built. This will limit the positives coming to those companies that plan to build new plants in India, potentially shooing away foreign entrants.
Tesla, at one point, was extremely likely to build a plant in India. Musk had met with Prime Minister Narendra Modi and said Tesla would one day be manufacturing cars in India.
The same was said about Mexico. In the near term, it does not seem likely.
These countries know what a massive investment from Tesla would entail and how it would benefit their economies. Now, they’re simply holding on to hope.
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Tesla robotaxi test details shared in recent report: 300 operators, safety tests, and more
Tesla has launched an initial robotaxi service for its employees in Austin and the San Francisco Bay Area.

During the Q1 2025 earnings call, Tesla executives reiterated the idea that the company will be launching a dedicated robotaxi service using its Full Self Driving (FSD) Unsupervised system this coming June.
A recent report from Insider, citing people reportedly familiar with the matter, has now provided a number of details about the preparations that Tesla has been making as it approaches its June target date.
Remote Operators
As noted by the publication, about 300 test operators have been driving through Austin city streets over the past few months using Teslas equipped with self-driving software. These efforts are reportedly part of “Project Rodeo.” Citing test drivers who are reportedly part of the program, Insider noted that Tesla’s tests involve accumulating critical miles. Test drivers are reportedly assigned to specific test routes, which include “critical” tracks where drivers are encouraged to avoid manual interventions, and “adversarial” tracks, which simulate tricky scenarios.
Tesla has launched an initial robotaxi service for its employees in Austin and the San Francisco Bay Area, though the vehicles only operate in limited areas. The vehicles also use safety drivers for now. However, Tesla has reportedly had discussions about using remote operators as safety drivers when the service goes live for consumers. Some test drivers have been moved into remote operator roles for this purpose, the publication’s sources claimed.
While Tesla is focusing on Austin and San Francisco for now, the company is reportedly also deploying test drivers in other key cities. These include Atlanta, GA, New York, NY, Seattle, WA, and Phoenix, AZ.
Safety Tests
Tesla reportedly held training events with local first responders as part of its preparations for its robotaxi service, Insider claimed, citing documents that it had obtained. As per the publication, Tesla had met with the city’s autonomous vehicle task force, which include members of the Austin Fire Department, back in December.
Back in March, Tesla reportedly participated in about six hours of testing with local first responders, which included members of the fire department and the police, at a close test track. Around 60 drivers and vehicles were reportedly used in the test to simulate real-world traffic scenarios.
Interestingly enough, a spokesperson from the Austin Police Department stated that Tesla did hold a testing day with emergency responders from Austin, Williamson County, as well as the Texas Department of Public Safety.
Reported Deadlines
While Tesla has been pretty open about its robotaxi service launching in Austin this June, the company is reportedly pursuing an aggressive June 1 deadline, at least internally. During meetings with Elon Musk, VP of AI software Ashok Elluswamy’s team reportedly informed the CEO that the company is on track to hit its internal deadline.
One of Insider’s sources, however, noted that the June 1 deadline is more aspirational or motivational. “A June 1 deadline makes a June 30 launch more likely,” the publication’s source noted.
News
Atty who refused to charge six-time Tesla vandal sparks controversy
Despite the multiple offenses, Moriarty opted to enter Adams into an adult diversion program instead.

Hennepin County Attorney Mary Moriarty, who made the decision not to charge 33-year-old vandal Dylan Bryan Adams after he keyed six Teslas around Minneapolis last month, has found herself in the middle of controversy.
The controversy came amidst her decision to press charges against a 19-year-old first-time vandal who keyed one vehicle at the White Castle in Brooklyn Park.
The Tesla Vandal
Moriarty’s decision not to charge Adams after he keyed six Teslas was met with widespread criticism. Adams’ actions resulted in more than $20,000 worth of damages, more than $10,000 of which was to a single vehicle, as noted in a New York Post report. Yet despite the multiple offenses, Moriarty opted to enter Adams into an adult diversion program instead.
The fact that Adams is a state employee who works for the Department of Human Services as a program consultant triggered allegations that his dismissal might be partly influenced by Gov. Tim Walz. Walz is a staunch critic of Musk, previously stating that the falling price of TSLA stock gives him a “boost” in the morning.
As noted in a report from The Minnesota Star Tribune, Moriarty’s decision was so controversial that she was asked about the matter on Wednesday. In response, the attorney argued that her office made the decision outside of any political consideration. “We try to make decisions without really looking at the political consequences. Can we always predict how a story will be portrayed in the media or what people will say? No,” Moriarty stated.
Actually Charged
As noted by the Tribune, Moriarty has made arguments around the fact that Adams was a first-time offender, even if he opted to deface six separate Teslas. But even this argument has become controversial since Moriarty recently charged a 19-year-old Robbinsdale woman with no criminal record with first-degree felony property damage after she allegedly keyed a co-worker’s car. The damage incurred by the 19-year-old woman was $7,000, substantially less than the over $20,000 damage that Adams’ actions have caused.
Cases surrounding felony first-degree property damage are fairly common, though they require the damage to be over $1,000. The 19-year-old’s damage to her co-worker’s car met this threshold. Adams’ damage to the six Teslas he vandalized also met this requirement.
When Moriarty was asked about her seemingly conflicting decisions, she noted that her office’s primary goal was to hold the person accountable for keying the vehicle and get restitution to the people affected. She also noted that her office tries to avoid convictions when possible since they could affect a person’s life. “Should we have treated this gentleman differently because it’s a political issue? We made this decision because it is in the best interest of public safety,” she noted.
News
Tesla faces emission credits tax in Washington state
House Bill 2077 taxes emissions credits, mainly hitting Tesla. Lawmakers expect $100M/year from the taxes.

Washington state lawmakers are advancing a bill that would tax Tesla’s emission credits, targeting profits under the state’s clean vehicle policy. Lawmakers who support the bill clarify that the Tesla credit tax is unrelated to Elon Musk.
HB 2077, introduced in mid-April, seeks to impose a 2% tax on emission credit sales and a 10% tax on banked credits. The bill primarily affects Tesla due to exemptions for companies with fewer credits.
In 2022, Washington’s Department of Ecology mandated that all new cars sold by 2035 be electric, hydrogen-fueled, or hybrids, with 35% compliance required by next year. Carmakers selling more gas-powered vehicles can buy credits from companies like Tesla, which sells only electric vehicles.
A legislative fiscal analysis projects taxes on those credits would generate $78 million in the 2025-27 biennium and $100 million annually thereafter. About 70% of the taxes will be allocated to the state’s general funds, and the rest will help expand electric car infrastructure.
HB 2077 passed the state House eight days after its introduction and awaits a Senate Ways and Means Committee vote on Friday. At a House Finance Committee hearing, supporters, including union and social service advocates, argued the tax would prevent cuts to state services.
House Majority Leader Joe Fitzgibbon emphasized its necessity amid frozen federal EV infrastructure funds. “We didn’t have a budget crisis until this year. And we didn’t have the federal government revoking huge amounts of federal dollars for EV infrastructure,” he said.
Tesla’s lobbyist, Jeff Gombosky, countered that the proposal “runs counter to the intent” of the state’s zero-emission policy. Rivian’s lobbyist, Troy Nichols, noted a “modest” impact on his company but warned it could undermine the EV mandate. Kate White Tudor of the Natural Resources Defense Council expressed concerns, stating, “We worry it sets a dubious precedent.”
Fitzgibbon defended the tax, noting Tesla’s dominant credit stockpile makes it “one outlier” that is “very profitable.” “That’s the kind of thing legislators take an interest in,” he said. “Is it serving the interest of the public for this asset to be untaxed?”
With the legislative session nearing its end, the bill remains a key focus in budget talks in Washington.
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