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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.

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.

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“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.

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.

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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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Energy

Tesla launches Powerwall Lease for affordable home backup

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Credit: Tesla

Tesla Energy has introduced the Powerwall Lease in conjunction with Tesla Electric, making the service available in Texas. This new option delivers whole-home backup power using two Powerwall units for a net monthly cost of $35 after credits, accompanied by a low fixed electricity rate.

Under the lease terms, customers pay a one-time order fee of $100. The base lease payment for the two Powerwalls is approximately $122 per month during the first year, subject to a 3 percent annual escalator thereafter. Enrollment in a qualifying Tesla Electric Backup plan or Virtual Power Plant plan provides an $87 monthly credit.

This credit lowers the effective cost to roughly $35 per month plus applicable tax.

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Installation of the standard system carries no additional charge. The package features Storm Watch for outage protection and allows complete management through a single Tesla application. The system supplies continuous whole-home backup capability.

The Powerwall system enables households to maintain electricity during severe storms that disrupt the utility grid. When outages occur, the batteries automatically provide seamless backup power to the home.

Tesla announces 100k Powerwalls are participating in Virtual Power Plants

Tesla Storm Watch monitors weather forecasts and ensures the units are fully charged ahead of anticipated severe weather events so that power remains available throughout the disruption, keeping lights, refrigeration, and other essential systems operating without interruption.

Availability is restricted to select Texas locations where retail electric choice exists. Participants must lease exactly two Powerwall units and maintain continuous enrollment with Tesla Electric. Solar panels cannot be included under this particular lease arrangement.

The monthly credit activates automatically once the system is installed, receives permission to operate, and enrollment is confirmed. To retain the credit, customers are required to stay enrolled in Tesla Electric and fulfill all program conditions.

Nonstandard installations that involve electrical upgrades or special permitting may lead to extra expenses and might impact eligibility for the credit, so be sure to check with either your installer or Tesla to ensure you will still qualify.

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News

Elon Musk teases Tesla Roadster unveiling once again

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tesla roadster
Credit: Tesla

Elon Musk continues to tease the unveiling event for the Tesla Roadster, a continuing trend that has grown into a bigger game of “When” for fans who have been waiting years for the car to finally enter production.

A video shared on X of the Joe Rogan Experience podcast that Musk appeared on last year, teasing the Roadster unveiling, was shared once again on the social media platform. The poster said the Roadster event will be “unforgettable.”

Musk agreed:

The timing is interesting because just yesterday, Musk said that we will be getting flying cars, and for years, Tesla has hinted that it could develop a SpaceX cold gas thruster package that would help the car float or fly for a short period of time.

It would be reasonable to assume Tesla’s major delays with this unveiling event are likely caused by the company’s need to break the rules and push the envelope on nearly everything. Last July, Lars Moravy, Tesla’s VP of Vehicle Engineering, said:

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“Roadster is definitely in development. We did talk about it last Sunday night. We are gearing up for a super cool demo. It’s going to be mind blowing. We showed Elon some cool demos last week of the tech we’ve been working on and he got a little excited.”

The latest updates that Tesla has given us are that the Roadster is in design development, and it did have several potential dates for an unveiling event this year, including April. It was then pushed to August.

However, there are no clues as to when Tesla will be ready, and fans are certainly getting frustrated with the delays.

For what it is worth, Franz von Holzhausen told Jay Leno this week that the event would be “very soon.”

We sure hope.

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Lifestyle

Tesla’s driverless Cybercab just passed a big test with State Governor

Florida’s governor rode Tesla’s Cybercab at a closed test track and called the experience impressive.

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Florida Governor Ron DeSantis rode in a Tesla Cybercab on a closed test track this week and came away impressed, posting on X that the vehicle “successfully navigated all hazards — a kid running into the street, a crash with police stopping traffic, a Model S cutting us off, etc.” He called the ride “impressive.”

The stop was part of a broader event Monday at SunTrax, a 775 acre state owned proving ground in Auburndale that Florida built specifically to test autonomous and connected vehicles before they reach public roads. Standing next to a gold Cybercab, DeSantis described the car in plain terms: “You go in there and you just sit. You have a screen. There’s no steering wheel, no pedals. Clearly these things could be very beneficial.”

DeSantis paired the praise with a caveat that has followed autonomous vehicles since the category existed. “You don’t want to be in an autonomous vehicle and it drives you into a ditch. That would not be good,” he said, framing safety validation as the gate before wider deployment.

SunTrax, the 2.25 mile oval which the state calls the only high speed autonomous vehicle test track in the Southeast, can simulate rain, pedestrian crossings, hills and crowded urban conditions at highway speeds, letting companies push a car past what an early public rollout would risk. Tesla, Waymo and Beep all use the facility, and Florida’s regulatory approach, among the most permissive for autonomous vehicles in the country, doesn’t require a human operator inside a fully autonomous car.

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Tesla has reason to want the blessing of Florida and states beyond, as the Cybercab entered volume production at Gigafactory Texas this spring and has since self certified as SAE Level 4 under Texas law. Public road testing so far has kept a safety monitor in the passenger seat, and Florida is where Tesla has been expanding its existing Model Y based Robotaxi service instead, adding Miami in July and then Orlando and Tampa two weeks later. A closed track endorsement from a sitting governor doesn’t change any of that, but it does put Tesla’s newest hardware in front of a state that has already shown it will move fast on rules.

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