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Tesla’s next Gigafactory location unknown, but all signs point toward India

Credit: Narendra Modi | Twitter

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In May, Tesla CEO Elon Musk said the electric automaker would likely announce its next Gigafactory location by year’s end.

While there have been rumors of deep talks in Spain, numerous meetings with French government officials, and heavy speculation regarding a relationship with Canada, Indonesia, and South Korea, it is becoming overwhelmingly clear that all signs are pointing toward India, a location where Tesla has mulled a factory for several years.

It all started back in 2015 when Indian Prime Minister Narendra Modi and Musk had their first meeting at the Fremont Factory in Northern California.

At the time, Tesla was still a young-and-scrappy car company, pushing out just thousands of units each year as it only offered the Model S and Model X at the time. Electric vehicles were still a far cry from what they are today, and while there were other options on the market, gas-powered options still dominated the overall market.

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Fast-forward to 2018, when Tesla decided to open its first vehicle production factory outside of the United States in Shanghai. The Chinese EV production plant quickly became Tesla’s most effective, accumulating thousands of workers and producing a majority of the automaker’s annual volume. It went from a domestic production facility for Chinese customers to an “export hub” that would feed some of the best-selling EVs to the European market.

This all happened before Tesla would commit to building a factory near Berlin in 2019, and then another factory in Mexico in 2023.

In 2021, Tesla seemed primed to announce it would make a substantial investment in India. It had a team of executives lined up, which included David Feinstein, Tesla vet who would be named Director of Global Trade and New Markets. Vaibhav Taneja was assigned as the Chief Accounting Officer for the India plant, and Prashanth R. Menon assumed the role of Director of Tesla India.

The team was even rounded out with Manuj Khurana for Policy and Development, Nishant Nishant for Charging Infrastructure, and Chithra Thomas for Human Resources. Samir Jain was set to take over India’s Service Operations for Tesla after seven years at Porsche, where he headed Aftersales for the German automaker’s operations in India.

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However, the team Tesla would put together for India would never get to work in the market, as it was set to establish the plant there.

Tesla had certain demands it needed to fulfill before committing to a Gigafactory there, and India had certain demands it needed to fulfill before giving Tesla what it wanted.

Tesla’s ‘challenges’ with India gov’t halt potential rescue of $27B manufacturing initiative

India has some of the highest import duties on vehicles in the world. The taxes would double the price of any car priced over $40,000 and 60 percent to any car under that threshold. Because of this, Tesla requested import duties be reduced to 40 percent, which would help the company determine if demand for its cars was high enough to move forward.

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However, Indian officials were reluctant to oblige to Tesla’s demands, arguing that “company-specific” duty rollbacks would not be possible.

The government has made its stance against company-specific incentives clear,” government officials from India said. “This also applies for one particular company requesting industrywide changes to existing policy. Over the past four years, multiple demands were made by a large US-based firm to open up the market at lower import duties as well. Now, they locally produce in India and are ramping up capacity.”

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India has a $27B manufacturing initiative called “Make In India,” which encourages companies from all corners of the globe to develop, produce, and assemble products in India with sizeable investments. This initiative was first introduced in 2014 by Modi.

Because Tesla would be importing vehicles from other countries, most likely China, into India’s marketplace, government officials were unfavorable of the idea of rolling back duties. However, they were willing to do so, only if Tesla would commit to building the factory in the first place, which completely eliminated the purpose of testing demand in the first place.

Two years later, it appears Tesla and India have come to some kind of agreement. Although the terms of a partnership or investment are unknown currently, both Modi and Musk have put forth statements that seem to indicate Tesla’s next factory will be in India.

“I am confident Tesla will be in India, and we’ll do so as soon as humanly possible,” Musk said. “Hopefully, we’ll be able to announce something in the not-too-distant future.”

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We don’t want to jump the gun on an announcement,” he added, “but it’s quite likely that there will be a significant investment and relationship in the future.”

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Modi also posted his own photo with Musk on his Twitter account, thanking the Tesla CEO for a “great meeting.”

Because of the widespread speculation regarding Tesla’s next factory, we can all speculate on where it will end up. But if there is any indication of what the automaker wants and what the government wants, the long-standing attempts to get a deal done may indicate Tesla is most likely to end up in India.

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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.

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 shows off mysterious vehicle at Giga Texas

The mysterious structure, partially unboxed amid construction materials, has sparked widespread speculation among Tesla enthusiasts and analysts. Many are convinced it is the long-rumored Model Y L, the extended-wheelbase variant already popular in China, now arriving in Texas for potential U.S. production.

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Credit: Joe Tegtmeyer | X

Tesla seemingly showed off a mysterious vehicle at Giga Texas, one that seems to be completely different than anything the company currently makes for the U.S. market.

The vehicle, which was spotted on the plant’s property, appears to be similar to the Model Y L that has not yet launched in North America, and is currently built at Gigafactory Shanghai in China.

Drone pilot Joe Tegtmeyer captured intriguing footage at Tesla’s Giga Texas on March 23, 2026, revealing what appears to be a large, blue plastic-wrapped vehicle body resting inside a wooden shipping crate outdoors.

The mysterious structure, partially unboxed amid construction materials, has sparked widespread speculation among Tesla enthusiasts and analysts. Many are convinced it is the long-rumored Model Y L, the extended-wheelbase variant already popular in China, now arriving in Texas for potential U.S. production.

The images show an elongated silhouette that stands out from standard Model Y bodies. Side-by-side comparisons shared in replies to Tegtmeyer’s post highlight key differences: the rear door extends farther over the wheel arch than on a regular Model Y, and the rear glass appears to run all the way to the spoiler lip without the metal trim seen on shorter versions.

One overlay analysis noted that the visible proportions align precisely with the Chinese-market Model Y L, which measures approximately 4.98 meters long with a 3.04-meter wheelbase, which is about seven inches longer overall than the standard Model Y sold in the U.S.

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The vehicle is a bare “body-in-white” shell, typical of prototypes sent abroad for tooling validation and local manufacturing ramp-up. Tesla has already launched the six- and seven-seat Model Y L in China and other markets, where it offers roughly 10% more cargo space and greater family-friendly versatility.

This sighting fits Tesla’s broader strategy. Industry observers expect the company to localize Model Y L production at Giga Texas by mid-2026 to serve American families seeking extra room without stepping up to the larger Cybertruck or a future full-size SUV.

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Bringing the design stateside could add tens of thousands of annual deliveries while leveraging existing Model Y lines. People have been adamant that they want the Model Y L in the U.S., especially as Tesla plans to fade the Model X, the company’s most ideal vehicle for large families, out of production in the near future.

Tesla Model Y lineup expansion signals an uncomfortable reality for consumers

While Tesla has made no official comment, the timing, amid Giga Texas expansion and steady Model Y output, suggests the mysterious crate is more than a random prototype.

If confirmed as the Model Y L, it marks another step in Tesla’s effort to refresh its bestselling SUV for global demand. The vehicle would perform exceptionally well in the U.S., and despite the company’s rather mute stance on bringing it to America, this might be the biggest hint to date that it could be on the way.

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Cybertruck

Tesla Cybertruck just won a rare and elusive crash safety honor

Only the most outstanding of performances in crash tests can warrant an IIHS Top Safety Pick+ award, as vehicles listed with that ranking must achieve “Good” ratings in the small overlap front, updated side, and updated moderate overlap front tests, along with “Acceptable” or “Good” headlights standard on all trims.

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(Credit: Tesla)

Tesla Cybertruck landed a rare and elusive safety honor from the Insurance Institute for Highway Safety (IIHS). It was the only pickup truck in the U.S. market to do so.

The IIHS rewarded the Cybertruck with the Top Safety Pick+ honors, the highest marks a vehicle can receive from the agency.

Only the most outstanding of performances in crash tests can warrant an IIHS Top Safety Pick+ award, as vehicles listed with that ranking must achieve “Good” ratings in the small overlap front, updated side, and updated moderate overlap front tests, along with “Acceptable” or “Good” headlights standard on all trims.

Cybertruck was the only truck to also win an NHTSA Five-Star Safety rating, making it the only pickup available on the market to be recognized with top marks from both agencies.

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There are a multitude of options for pickups in the U.S. market, as it is one of the most popular vehicle types for consumers in the country. Pickups are great vehicles for anyone who does any sort of hauling or is just looking for extra space for any variety of reasons.

Pickups are also inherently safer than other body types on the road, mostly because they are larger and heavier, making them more favorable against other vehicle types in the event of a collision. However, Tesla has a significant advantage in safety with its vehicles because it engineers them to not only be safer in collisions, but also easier to repair.

The Cybertruck managed to achieve “Good” ratings, the highest marks available by the IIHS, in all three Crashworthiness categories, as well as “Good” ratings in both Crash Avoidance and Mitigation assessments.

It also received “Good” ratings across all driver and pedestrian crash-test performance metrics, except for one, where it earned an “Acceptable” rating for rear passengers in the Chest category.

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The Cybertruck’s outstanding crash test performance has won it this incredible mark as the pickup still tends to be one of the more polarizing vehicle designs on the market.

It is no secret that Tesla has struggled with demand of the Cybertruck due to pricing, but the recent rollout of a trim that was temporarily priced at just $59,990 showed plenty of people want the all-electric pickup.

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Elon Musk

Elon Musk’s Boring Co. Tunnel Vision Challenge ends with a surprise for Louisiana, Maryland and Dallas

The Boring Company stunned three cities today, awarding New Orleans, Baltimore, and Dallas free underground Loop tunnels.

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Elon Musk’s The Boring Company (TBC) announced today that it is building free underground Loop tunnels in three American cities: New Orleans, Louisiana; Baltimore, Maryland; and Dallas, Texas. The company had promised one winner when it launched the Tunnel Vision Challenge in January. After receiving 487 submissions, it selected three, committing to fund and construct all of them pending a feasibility review, entirely at its own expense. For a company that has faced years of skepticism over the gap between its promises and its delivered projects, choosing to expand its commitment rather than narrow it is a notable shift in both scale and accountability.

All three projects will now enter a rigorous, fully funded diligence phase that includes meetings with elected officials, regulators, community and business leaders, geotechnical borings, and a complete investigation of subsurface utilities and infrastructure. TBC confirmed that all costs associated with this diligence process are 100% funded by the company. If all three projects pass feasibility, all three get built. If only one clears the bar, that one gets built. The company’s willingness to fund the due diligence regardless of outcome removes one of the most common early-stage barriers that kills promising infrastructure proposals before they leave a spreadsheet.

Beyond the three winners, TBC announced it will continue working with two additional entrants it found compelling enough to pursue independently: the Hendersonville Utility Tunnel in Hendersonville, Tennessee, and the Morgan’s Wonderland Tunnel in San Antonio, Texas, which would notably serve one of the nation’s premier theme parks built specifically for guests with special needs.

The challenge also coincides with TBC’s most active construction period to date. The company recently began drilling on the Music City Loop near the Tennessee State Capitol in Nashville, and in February it broke ground on a Loop in Dubai. Musk has long argued that the fundamental problem with urban infrastructure is cost and bureaucratic inertia, not engineering. “The key to solving traffic is making going 3D either up or down,” he said in 2018, a conviction now reflected in a company structure built to absorb the financial risk that typically stalls public projects for years.

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Music City Loop could highlight The Boring Company’s real disruption

The Tunnel Vision Challenge’s most underappreciated element may be what it produced beyond three winners. Submissions came from individuals, companies, and governments across states including Alaska, Arkansas, Colorado, Kansas, Louisiana, Maryland, New York, and Texas, as well as from international entrants. Musk captured the underlying logic years ago when he said, “Traffic is driving me nuts. I’m going to build a tunnel boring machine and just start digging.” Today, three American cities are counting on exactly that.

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