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Tesla wants India’s government to consider lowering import taxes

(Credit: Tesla)

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Tesla is seeking lower import taxes on electric vehicles in India by writing to the country’s government ministries. The electric car company said it would boost demand and generate revenue for the government.

Tesla has been working for several years to enter India for electric vehicle sales. Producing vehicles domestically within India’s borders is most ideal for companies and customers as import duties can double the cost of a vehicle. However, Tesla has finally started making some moves toward building and producing electric cars at a new factory in India. Earlier this year, Tesla applied for and received two licenses to give the company permission to operate as a vehicle manufacturer.

This could take several years, and Tesla knows it. According to sources close to the situation, Tesla is now attempting to get in touch with Indian ministries to discuss a possible reduction of import duties on electric cars. Reuters initially published the report.

In a letter to Ministries and Niti Aayog, India’s leading think-tank, Tesla argues that slashing imports of fully assembled electric cars to 40% would be more appropriate than the current 60% rate for cars under $40,000 and 100% for those above $40,000. Tesla only has its Model 3 Standard Range+ variant under the $40,000 threshold. This would impose a 100% tax on all of its vehicles, except for this configuration.

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“The argument is that at 40% import duty, electric cars can become more affordable, but the threshold is still high enough to compel companies to manufacture locally if demand picks up,” one source, who declined to be identified, said.

The argument Tesla brings to the table is a good one: not only is India a prime candidate for electrification due to a large population and high pollution levels in the country that would favor sustainable energy, but it is a market that is thirsty for Tesla. The company has been requested in India for several years, and CEO Elon Musk has been attempting to enter the market. However, the ideas Tesla brings to the table could be turned away by politicians, like Prime Minister Narendra Modi, who has supported high import taxes to increase local manufacturing efforts.

Importing vehicles into the country would give Tesla a better idea of demand and whether it would be worth entering the market and building an India Gigafactory. However, the sources indicated that the company’s plan to begin sales is not dependent on a change in government policy.

Tesla could import vehicles from Gigafactory Shanghai in China to Indian customers if import taxes are lowered. However, this could be a difficult term to agree to as India’s Transport Minister, Nitin Gadkari, said that India would be willing to offer incentives to insure Tesla’s costs in the country is less than what it is in China. However, Tesla must manufacture its vehicles within the country.

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Don’t hesitate to contact us with tips! Email us at tips@teslarati.com, or you can email me directly at joey@teslarati.com.

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 Full Self-Driving shows stunning maneuver in Europe to silence skeptics

In a striking demonstration of autonomous driving prowess, Tesla’s Full Self-Driving (FSD) system recently showcased its capabilities on the narrow rural roads of the Netherlands. Captured in two in-car videos, the system encountered scenarios that would challenge even the most experienced human drivers.

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Credit: Tesla

Tesla Full Self-Driving, fresh on the heels of its approval for operation on European roads for the first time, showed off a stunning maneuver that will certainly silence any skeptics on the continent.

Fresh off its approval in the Netherlands, Full Self-Driving is working toward a significant expansion into more parts of Europe.

In a striking demonstration of autonomous driving prowess, Tesla’s Full Self-Driving (FSD) system recently showcased its capabilities on the narrow rural roads of the Netherlands. Captured in two in-car videos, the system encountered scenarios that would challenge even the most experienced human drivers.

In the first clip, a wide tractor occupied more than half the lane on a tight two-way road. Rather than braking abruptly or forcing a collision risk, FSD smoothly edged the vehicle onto the adjacent bike path—using the extra space with precision—before seamlessly returning to the lane once clear.

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The second clip was equally demanding: while overtaking a group of cyclists, an oncoming car approached at speed.

FSD maintained a safe, minimal buffer to the cyclists while timing the pass perfectly, avoiding any swerve or hesitation that could unsettle passengers or other road users.

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This maneuver highlights FSD’s advanced spatial reasoning and predictive planning. On roads often under three meters wide, with no room for error, the system calculated available clearance in real time, incorporated shoulder and path geometry, and executed a controlled deviation without compromising safety.

It treated the bike path as a legitimate extension of navigable space, something many drivers might hesitate to do, while respecting Dutch road norms and cyclist priority.

Such feats align closely with a growing library of impressive FSD maneuvers documented on camera worldwide.

In urban Amsterdam, for instance, FSD has navigated the world’s densest cyclist environments, weaving through hundreds of unpredictable bike movements on canal-side streets with tram tracks and pedestrians.

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One uncut drive showed it yielding smoothly at crossings, overtaking where needed, and even handling a near-perfect auto-park in a tight residential spot, demonstrating the same low-speed precision seen in the rural clips.

Teslas using FSD have tackled turbo roundabouts in the Netherlands, complex multi-lane circles notorious for geometry challenges, merging confidently while yielding to traffic. Similar clips depict smooth handling of construction zones, emergency vehicle pull-overs, and gated parking barriers, where the car stops precisely, waits for clearance, and proceeds without driver input.

Collectively, these examples illustrate FSD’s evolution toward handling the unpredictable.

The rural Netherlands maneuvers aren’t isolated. Instead, they reflect a pattern of spatial awareness, cyclist deference, and traffic anticipation seen from city streets to highways.

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As FSD continues refining through real-world data, videos like this one are certainly building a compelling case for its readiness on Europe’s varied roads.

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Tesla utilizes its ‘Rave Cave’ for new awesome safety feature

Part of the massive interior overhaul of both the Model 3 “Highland” and Model Y “Juniper” was the addition of interior accent lighting to help bring out the mood of the vehicle, increase the customization of the interior, and to create a unique listening experience.

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Credit: Tesla | X

Tesla is utilizing its ‘Rave Cave’ for an awesome new safety feature that will arrive with the upcoming Spring Update for 2026.

Part of the massive interior overhaul of both the Model 3 “Highland” and Model Y “Juniper” was the addition of interior accent lighting to help bring out the mood of the vehicle, increase the customization of the interior, and to create a unique listening experience.

Tesla added a Sync Lights feature that will strobe the accent strips with the beat of the music.

It is one of the most unique and one of the coolest non-functional features of a Tesla, as it does not improve the driving of the vehicle, but makes it a cool and personal addition to the interior.

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However, Tesla is going to take it one step further, as the Rave Cave lights will now be used for blind spot recognition. This feature will be added as the Spring 2026 Update starts to roll out.

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Tesla writes:

“Accent lights now turn red when an object is in your blind spot and your turn signal is engaged, or when an approaching object is detected while parked.”

This neat new safety feature will now increase the likelihood of a driver, who is operating their Tesla manually, of seeing the blind spot warnings that are currently available on the A pillar and on the center touchscreen.

These new alerts will now warn drivers of cross traffic as they back out of a parking space with little to no visibility of what is coming. It is a great new addition that will only increase the safety of the vehicles, while also utilizing something that is already installed in these specific Model 3 and Model Y units.

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The Model 3 and Model Y were the central focus of the Spring 2026 Update, especially considering the fact that the Model S and Model X are basically gone, with only a few hundred units left. Additionally, Tesla included new Immersive Sound and Car Visualization for the Model 3 and Model Y specifically in this new update.

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Tesla parked 50+ Cybercabs outside its Texas Factory with some crash tested

Dozens of Tesla Cybercabs have been spotted at Giga Texas crash testing facility ahead of launch.

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Tesla Cybercab fleet spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)
Tesla Cybercab fleet spotted at Gigafactory Texas on April 13, 2026 [Credit: Joe Tegtmeyer)

Drone footage captured by longtime Giga Texas observer Joe Tegtmeyer shows over 50 units of Tesla Cybercab at the Austin factory campus, including several units clustered by Tesla’s on-site crash testing facility.

The outbound lot at Gigafactory Texas sits just outside the factory exit and serves as the primary staging area where finished vehicles are held before being loaded onto transport carriers or dispatched for validation testing. On any given day, the lot holds a mix of Model Y and Cybertruck units alongside the growing Tesla Cybercab fleet, as can be seen in the drone footage captured by Joe Tegtmeyer.

Tesla Cybercab fleet spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

Tesla Cybercab fleet spotted at Gigafactory Texas on April 13, 2026 [Credit: Joe Tegtmeyer)

Roughly 50 Cybercab units are visible across the campus, parked in tight organized rows. Most of the units visible still carry steering wheels and pedals, temporary additions Tesla included to satisfy current safety regulations while the vehicles accumulate real-world data ahead of full regulatory approval for a steering wheel-free design.

Tesla Cybercab fleet spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

Tesla Cybercab fleet spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

Tesla operates dedicated Crash Labs at both its Giga Texas and Fremont facilities that are purpose-built for controlled structural crash tests. Historically, automakers begin intensive crash testing roughly one to two months before volume production kicks off. The Cybertruck followed almost exactly that pattern. The Cybercab appears to be on the same track facility that we first saw back in October 2025.

Tesla Cybercab crash test units spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

Tesla Cybercab crash test units spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

The first production Cybercab rolled off the Giga Texas line on February 17, 2026. Volume production is now targeted for April. Musk previously wrote on X that “the early production rate will be agonizingly slow, but eventually end up being insanely fast,” and separately stated Tesla is targeting at least 2 million Cybercab units per year. Commercial robotaxi service in Austin is targeted for late 2026.

 

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