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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.

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.

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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.

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.

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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.

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

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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.”

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.”

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

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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.

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.

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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 lands regulatory green light for Robotaxi testing in new state

This will be the third state in total where Tesla is operating Robotaxi, following Austin and California.

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Credit: Tesla

Tesla has landed a regulatory green light to test its Robotaxi platform in a new state, less than three months after the ride-hailing service launched in Texas.

Tesla first launched its driverless Robotaxi suite in Austin, Texas, back on June 22. Initially offering rides to a small group of people, Tesla kept things limited, but this was not to be the mentality for very long.

It continued to expand the rider population, the service area, and the vehicle fleet in Austin.

The company also launched rides in the Bay Area, but it does use a person in the driver’s seat to maintain safety. In Austin, the “Safety Monitor” is present in the passenger’s seat during local rides, and in the driver’s seat for routes that involve highway driving.

Tesla is currently testing the Robotaxi platform in other states. We reported that it was testing in Tempe, Arizona, as validation vehicles are traveling around the city in preparation for Robotaxi.

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Tesla looks to make a big splash with Robotaxi in a new market

Tesla is also hoping to launch in Florida and New York, as job postings have shown the company’s intention to operate there.

However, it appears it will launch in Nevada before those states, as the company submitted its application to obtain a Testing Registry certification on September 3. It was processed by the state’s Department of Motor Vehicles Office of Business Licensing on September 10.

It will then need to self-certify for operations, essentially meaning they will need to comply with various state requirements.

This will be the third state in total where Tesla is operating Robotaxi, following Austin and California.

CEO Elon Musk has stated that he believes Robotaxi will be available to at least half of the U.S. population by the end of the year. Geographically, Tesla will need to make incredible strides over the final four months of the year to achieve this.

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Tesla is improving this critical feature in older vehicles

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Credit: Tesla

Tesla is set to improve a critical feature that has not been present in older vehicles with a new update.

Tesla vehicles feature a comprehensive suite of driver assistance features, some of which aid in driving itself, while others support the vehicle’s surroundings.

One of those features is that of Driver Visualization, and with the rollout of a new update, owners of Intel-based Tesla vehicles are receiving an upgrade that will come with a simple software update.

Tesla plans to use Unreal Engine for driver visualization with crazy upgrade

The update will provide new visualizations while Intel-based vehicles are in reverse, a feature that was not previously available, but will be with Software Update 2025.32.2.

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The improvement was spotted by Not a Tesla App via TheBeatYT_evil:

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Previously, vehicles Tesla built were equipped with Intel-based processors, but newer cars feature the AMD chip, which is capable of rendering these visualizations as they happen. They were capable of visualizations when driving forward, but not in reverse, which is what this change resolves.

It is a good sign for those with Intel-based vehicles, as Tesla seems to be paying attention to what those cars are not capable of and improving them.

This was an undocumented improvement associated with this particular update, so you will not find any mention of it in the release notes that Tesla distributes with each update.

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Tesla looks to make a big splash with Robotaxi in a new market

Tesla has been transparent that it is prioritizing safety, but it believes it can expand to basically any geographical location within the United States and find success with its Robotaxi suite. CEO Elon Musk said it could be available to half of the U.S. population by the end of the year.

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Credit: Joe Tegtmeyer | X

Tesla is looking to make a big splash with Robotaxi in a new market, as the company was spotted testing validation vehicles in one region where it has not yet launched its ride-hailing service.

After launching Robotaxi in Austin in late June, Tesla followed up with a relatively quick expansion to the Bay Area of California. Both service areas are operating with a geofence that is expansive: In Texas, it is 173 square miles, while in the Bay Area, it is roughly 400 square miles.

Tesla has been transparent that it is prioritizing safety, but it believes it can expand to basically any geographical location within the United States and find success with its Robotaxi suite. CEO Elon Musk said it could be available to half of the U.S. population by the end of the year.

There have been plenty of reports out there that have speculated as to where Tesla would land next to test Robotaxi, and Nevada, Florida, Arizona, and New York have all been in the realm of possibility. These regions will need to approve Tesla for regulatory purposes before Robotaxi can officially operate.

Tesla is still testing and performing validation in several regions, and in Tempe, Arizona, things are moving forward as a Model Y with a LiDAR rig was spotted performing ground truth for the platform:

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With the LiDAR unit, many followers of the self-driving and autonomy space might wonder why Tesla uses these apparatuses during validation, especially considering the company’s stance and vision-based approach.

LiDAR is used for “ground truth,” which is basically a solidification or confirmation of what the cameras on the car are seeing. It is a great way to essentially confirm the accuracy of the vision-based suite, and will not be used on Robotaxi units used within the ride-hailing suite.

The Robotaxi platform was made available to the public earlier this month, as Tesla launched its app for iOS users.

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Tesla Robotaxi app download rate demolishes Uber, Waymo all-time highs

Downloading the app allows you to join a waitlist, giving you the opportunity to utilize and test the Robotaxi platform in either Austin or the Bay Area.

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