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Tesla’s entry into India won’t include duty waivers, gov’t official says

A Tesla Model 3 testing in India (Credit: pune_exotics/Instagram)

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Tesla’s entry into India won’t include duty waivers that would allow vehicles to be imported into the market for a reduced rate, government official Sanjay Malhotra, the country’s Revenue Secretary, said.

Earlier today, reports that Tesla was considering an annual production rate of 500,000 vehicles at its potential Indian Gigafactory circulated, bringing more structure to the potential that the automaker will bring a presence to India.

Tesla pondering 500k annual EV production in India: report

For years, Tesla and the Indian Government have sparred to come to terms that would see the electric automaker build a factory in the country.

Tesla has fought for severely reduced import duties, while Indian officials were sure to make that happen as long as the company committed to building a production plant. It was a game of chicken that neither entity was willing to budge on, and it eventually led to stalled negotiations.

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However, the Indian government and Tesla have reignited talks lately, and CEO Elon Musk has even said that the region would be ideal for the automaker’s next factory, which could be announced by year’s end.

India will not be catering to Tesla’s wishes of a reduced import duty for its vehicles, according to Malhotra, who told Reuters that the electric car company based out of Austin, Texas, will not receive a reduction to import cars from other markets.

“Any duty waiver for Tesla is not under active consideration of the Department of Revenue, as of now,” Malhotra said.

There are multiple ways to look at this: One is that Tesla is willing to relinquish its fight for reduced duties to build cars in India, India is still unwilling to move forward with the deal if it means Tesla gets reduced duties, and we’re looking at another stall in negotiations, or Tesla is being kept in the dark about the negotiations and might have been misled.

Tesla won’t launch production in a company with literally no market research, and while the company has established itself as the leader in EVs, that could be a different story in a market like India, where cheap, affordable competitors are widely available.

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India has always focused on domestic production with its Make in India campaign, and Tesla obviously wants to be in the country, but only if the terms are right.

The saga of Tesla-India has been long and drawn out, and if an agreement can’t be reached right now, it doesn’t seem like anything will ever come to fruition.

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 hosts Rome Mayor for first Italian FSD Supervised road demo

The event marked the first time an Italian mayor tested the advanced driver-assistance system in person in Rome’s urban streets.

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Credit: @andst7/X

Tesla definitely seems to be actively engaging European officials on FSD’s capabilities, with the company hosting Rome Mayor Roberto Gualtieri and Mobility Assessor Eugenio Patanè for a hands-on road demonstration. 

The event marked the first time an Italian mayor tested the advanced driver-assistance system in person in Rome’s urban streets. This comes amid Tesla’s push for FSD’s EU regulatory approvals in the coming year.

Rome officials experience FSD Supervised

Tesla conducted the demo using a Model 3 equipped with Full Self-Driving (Supervised), tackling typical Roman traffic including complex intersections, roundabouts, pedestrian crossings and mixed users like cars, bikes and scooters.

The system showcased AI-based assisted driving, prioritizing safety while maintaining flow. FSD also handled overtakes and lane decisions, though with constant driver supervision.

Investor Andrea Stroppa detailed the event on X, noting the system’s potential to reduce severe collision risks by up to seven times compared to traditional driving, based on Tesla’s data from billions of global fleet miles. The session highlighted FSD’s role as an assistance tool in its Supervised form, not a replacement, with the driver fully responsible at all times.

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Path to European rollout

Tesla has logged over 1 million kilometers of testing across 17 European countries, including Italy, to refine FSD for local conditions. The fact that Rome officials personally tested FSD Supervised bodes well for the program’s approval, as it suggests that key individuals are closely watching Tesla’s efforts and innovations.

Assessor Patanè also highlighted the administration’s interest in technologies that boost road safety and urban travel quality, viewing them as aids for both private and public transport while respecting rules.

Replies on X urged involving Italy’s Transport Ministry to speed approvals, with one user noting, “Great idea to involve the mayor! It would be necessary to involve components of the Ministry of Transport and the government as soon as possible: it’s they who can accelerate the approval of FSD in Italy.”

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Tesla FSD (Supervised) blows away French journalist after test ride

Cadot described FSD as “mind-blowing,” both for the safety of the vehicle’s driving and the “humanity” of its driving behaviors.

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Credit: Grok Imagine

Tesla’s Full Self-Driving (Supervised) seems to be making waves in Europe, with French tech journalist Julien Cadot recently sharing a positive first-hand experience from a supervised test drive in France. 

Cadot, who tested the system for Numerama after eight years of anticipation since early Autopilot trials, described FSD as “mind-blowing,” both for the safety of the vehicle’s driving and the “humanity” of its driving behaviors.

 

Julien Cadot’s FSD test in France

Cadot announced his upcoming test on X, writing in French: “I’m going to test Tesla’s FSD for Numerama in France. 8 years I’ve been waiting to relive the sensations of our very first contact with the unbridled Autopilot of the 2016s.” He followed up shortly after with an initial reaction, writing: “I don’t want to spoil too much because as media we were allowed to film everything and I have a huge video coming… But: it’s mind-blowing! Both for safety and for the ‘humanity’ of the choices.”

His later posts detailed FSD’s specific maneuvers that he found particularly compelling. These include the vehicle safely overtaking a delivery truck by inches, something Cadot said he personally would avoid to protect his rims, but FSD handled flawlessly. He also praised FSD’s cyclist overtakes, as the system always maintained the required 1.5-meter distance by encroaching on the opposite lane when clear. Ultimately, Cadot noted FSD’s decision-making prioritized safety and advancement, which is pretty remarkable.

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FSD’s ‘human’ edge over Autopilot

When asked if FSD felt light-years ahead of standard Autopilot, Cadot replied: “It’s incomparable, it’s not the same language.” He elaborated on scenarios like bypassing a parked delivery truck across a solid white line, where FSD assessed safety and proceeded just as a human driver might, rather than halting indefinitely. This “humanity” impressed Cadot the most, as it allowed FSD to fluidly navigate real-world chaos like urban Paris traffic. 

Tesla is currently hard at work pushing for the rollout of FSD to several European countries. Recent reports have revealed that Tesla has received approval to operate 19 FSD test vehicles on Spain’s roads, though this number could increase as the program develops. As per the Dirección General de Tráfico (DGT), Tesla would be able to operate its FSD fleet on any national route across Spain. Recent job openings also hint at Tesla starting FSD tests in Austria. Apart from this, the company is also holding FSD demonstrations in Germany, France, and Italy.

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Tesla Optimus shows off its newest capability as progress accelerates

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Credit: Tesla

Tesla Optimus showed off its newest capability as progress on the project continues to accelerate toward an ultimate goal of mass production in the coming years.

Tesla is still developing Optimus and preparing for the first stages of mass production, where units would be sold and shipped to customers. CEO Elon Musk has always marketed the humanoid robot as the biggest product in history, even outside of Tesla, but of all time.

He believes it will eliminate the need to manually perform monotonous tasks, like cleaning, mowing the lawn, and folding laundry.

However, lately, Musk has revealed even bigger plans for Optimus, including the ability to relieve humans of work entirely within the next 20 years.

Development at Tesla’s Artificial Intelligence and Robotics teams has progressed, and a new video was shown of the robot taking a light jog with what appeared to be some pretty natural form:

Optimus has also made several public appearances lately, including one at the Neural Information Processing Systems, or NeurIPS Conference. Some spectators shared videos of Optimus’s charging rig, as well as its movements and capabilities, most interestingly, the hand:

The hand, forearm, and fingers have been one of the most evident challenges for Tesla in recent times, especially as it continues to work on its 3rd Generation iteration of Optimus.

Musk said during the Q3 Earnings Call:

“I don’t want to downplay the difficulty, but it’s an incredibly difficult thing, especially to create a hand that is as dexterous and capable as the human hand, which is incredible. The human hand is an incredible thing. The more you study the human hand, the more incredible you realize it is, and why you need four fingers and a thumb, why the fingers have certain degrees of freedom, why the various muscles are of different strengths, and fingers are of different lengths. It turns out that those are all there for a reason.”

The interesting part of the Optimus program so far is the fact that Tesla has made a lot of progress with other portions of the project, like movement, for example, which appears to have come a long way.

However, without a functional hand and fingers, Optimus could be rendered relatively useless, so it is evident that it has to figure this crucial part out first.

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