Volkswagen has teamed up with Tesla in support of slashing import duties in India, the major barrier between automakers selling their vehicles in the market due to the high rates the country’s government has equipped to boost local manufacturing.
For the last few months, Tesla has made more progress toward entering India with its vehicles, hoping to increase sales in the fifth-largest automotive market globally. In 2021, Tesla has made more progress with the India entrance than ever before, receiving business licenses, registering itself as an entity with the ability to sell vehicles, and establishing a team of company executives to oversee the entire operation. It seemed that Tesla would finally enter the market, bringing clean and sustainable all-electric powertrains to the oil-savvy nation of India.
However, import taxes are a big hold up in the process currently. Cars with a price tag of $40,000 or less have a 60% import tax applied to them, while anything more than that number has a 100% duty, effectively doubling the price of the car. Tesla attempted to lobby with India’s government officials to reduce the import duties. Still, numerous members of the Parliament have declined to work with the automaker, as local manufacturing takes priority. Some government officials are concerned that it could take momentum away from domestic carmakers and auto parts suppliers. The deal must benefit India’s local entities.
This led to a bottleneck in Tesla’s potential entrance, as CEO Elon Musk stated he was unwilling to establish a manufacturing plant in India without testing demand. Demand would be measured through imports, and if sales figures in India were hefty enough that a production facility would be justified, Musk said that Tesla would build an assembly facility in the country. However, Tesla had pushback from politicians who said that individual companies could not receive incentives, but Tesla pushed for all EV makers to qualify for the reductions. Earlier this week, India’s officials announced there were talks to reduce duties to encourage non-domestic manufacturers to sell their products in the country.
Now, Volkswagen AG is getting involved and is pushing for lower import duties in India as well. The company is proposing reductions to as little as 25% for import duties, stating that the reduction would not pose a “big threat” to domestic companies but would still make imported vehicles more expensive than local options.
“The market for EVs has to be big enough for investments to come in, and for that, we shouldn’t be placing barriers,” Managing Director of Skoda Auto Volkswagen India Gurpratap Boparai said to Reuters.
Volkswagen AG has several electric vehicles out across its different brands, including Audi, and of course, its own VW brand with the ID.3, ID.4, and other models that are soon entering production. However, it is aiming for only its Volkswagen and Skoda brands to enter the market. This will not occur unless there is movement on import duties.
Attempts to decrease the duties have resulted in other manufacturers like Mercedes-Benz and Hyundai voicing support for the proposed cuts. However, local companies, like Tata Motors, are not encouraged by the proposals. Once again, the argument is local manufacturing should be prioritized. Boparai disagrees.
“I’m not at all saying that local manufacturing should not be encouraged … but duty of 60% and 100% is prohibitively high at this juncture,” he added.
What do you think? Let us know in the comments below, or be sure to email me at joey@teslarati.com or on Twitter @KlenderJoey.
Elon Musk
Elon Musk’s lawsuit against OpenAI and Microsoft is heading to jury trial
The ruling keeps alive claims that OpenAI misled the Tesla CEO about its charitable purpose while accepting billions of dollars in funding.
OpenAI Inc. and Microsoft will face a jury trial this spring after a federal judge rejected their efforts to dismiss Elon Musk’s lawsuit, which accuses the artificial intelligence startup of abandoning its original nonprofit mission. The ruling keeps alive claims that OpenAI misled the Tesla CEO about its charitable purpose while accepting billions of dollars in funding.
As noted in a report from Bloomberg News, a federal judge in Oakland, California, ruled that OpenAI Inc. and Microsoft failed to show that Musk’s claims should be dismissed. U.S. District Judge Yvonne Gonzalez Rogers stated that while the evidence remains unclear, Musk has maintained that OpenAI “had a specific charitable purpose and that he attached two fundamental terms to it: that OpenAI be open source and that it would remain a nonprofit — purposes consistent with OpenAI’s charter and mission.”
Judge Gonzalez Rogers also rejected an argument by OpenAI suggesting that Musk’s use of an intermediary to donate $38 million in seed money to the company stripped him of legal standing. “Holding otherwise would significantly reduce the enforcement of a large swath of charitable trusts, contrary to the modern trend,” Judge Gonzalez Rogers wrote.
The judge also declined to dismiss Musk’s fraud allegations, citing internal OpenAI communications from 2017 involving co-founder Greg Brockman. In an email cited by the judge, fellow OpenAI board member Shivon Zilis informed Musk that Brockman would “like to continue with the non-profit structure.”
Just two months later, however, Brockman wrote in a private note that he “cannot say that we are committed to the non-profit. don’t want to say that we’re committed. if three months later we’re doing b-corp then it was a lie.”
Marc Toberoff, a member of Musk’s legal team, said Judge Gonzalez Rogers’s ruling confirms that “there is substantial evidence that OpenAI’s leadership made knowingly false assurances to Mr. Musk about its charitable mission that they never honored in favor of their personal self-enrichment.”
OpenAI, for its part, maintained that Musk’s legal efforts are baseless. In a statement, the AI startup said it is looking forward to the upcoming trial. “Mr. Musk’s lawsuit continues to be baseless and a part of his ongoing pattern of harassment, and we look forward to demonstrating this at trial. We remain focused on empowering the OpenAI Foundation, which is already one of the best-resourced nonprofits ever,” OpenAI stated.
News
Tesla arsonist who burned Cybertruck sees end of FAFO journey
The man has now reached the “Find Out” stage.
A Mesa, Arizona man has been sentenced to five years in federal prison for setting fire to a Tesla location and vehicle in a politically motivated arson attack, federal prosecutors have stated.
The April 2025 incident destroyed a Tesla Cybertruck, endangered first responders, and triggered mandatory sentencing under federal arson laws.
A five-year sentence
U.S. District Judge Diane J. Humetewa sentenced Ian William Moses, 35, of Mesa, Arizona, to 5 years in prison followed by 3 years of supervised release for maliciously damaging property and vehicles by means of fire. Moses pleaded guilty in October to all five counts brought by a federal grand jury. Restitution will be determined at a hearing scheduled for April 13, 2026.
As per court records, surveillance footage showed Moses arriving at a Tesla store in Mesa shortly before 2 a.m. on April 28, 2025, carrying a gasoline can and backpack. Investigators stated that he placed fire starter logs near the building, poured gasoline on the structure and three vehicles, and ignited the fire. The blaze destroyed a Tesla Cybertruck. Moses fled the scene on a bicycle and was arrested by Mesa police about a quarter mile away, roughly an hour later.
Authorities said Moses was still wearing the same clothing seen on camera at the time of his arrest and was carrying a hand-drawn map marking the dealership’s location. Moses also painted the word “Theif” on the walls of the Tesla location, prompting jokes from social media users and Tesla community members.
The “Finding Out” stage
U.S. Attorney Timothy Courchaine noted that Moses’ sentence reflects the gravity of his crime. He also highlighted that arson is never acceptable.
“Arson can never be an acceptable part of American politics. Mr. Moses’ actions endangered the public and first responders and could have easily turned deadly. This five-year sentence reflects the gravity of these crimes and makes clear that politically fueled attacks on Arizona’s communities and businesses will be met with full accountability.”
Maricopa County Attorney Rachel Mitchell echoed the same sentiments, stating that regardless of Moses’ sentiments towards Elon Musk, his actions are not defensible.
“This sentence sends a clear message: violence and intimidation have no place in our community. Setting fire to a business in retaliation for political or personal grievances is not protest, it is a crime. Our community deserves to feel safe, and this sentence underscores that Maricopa County will not tolerate political violence in any form.”
News
Tesla says its Texas lithium refinery is now operational and unlike anything in North America
Elon Musk separately described the site as both the most advanced and the largest lithium refinery in the United States.
Tesla has confirmed that its Texas lithium refinery is now operational, marking a major milestone for the company’s U.S. battery supply chain. In a newly released video, Tesla staff detailed how the facility converts raw spodumene ore directly into battery-grade lithium hydroxide, making it the first refinery of its kind in North America.
Elon Musk separately described the site as both the most advanced and the largest lithium refinery in the United States.
A first-of-its-kind lithium refining process
In the video, Tesla staff at the Texas lithium refinery near Corpus Christi explained that the facility processes spodumene, a lithium-rich hard-rock ore, directly into battery-grade lithium hydroxide on site. The approach bypasses intermediate refining steps commonly used elsewhere in the industry.
According to the staff, spodumene is processed through kilns and cooling systems before undergoing alkaline leaching, purification, and crystallization. The resulting lithium hydroxide is suitable for use in batteries for energy storage and electric vehicles. Tesla employees noted that the process is simpler and less expensive than traditional refining methods.
Staff at the facility added that the process eliminates hazardous byproducts typically associated with lithium refining. “Our process is more sustainable than traditional methods and eliminates hazardous byproducts, and instead produces a co-product named anhydrite, used in concrete mixes,” an employee noted.
Musk calls the facility the largest lithium refinery in America
The refinery’s development timeline has been very impressive. The project moved from breaking ground in 2023 to integrated plant startup in 2025 by running feasibility studies, design, and construction in parallel. This compressed schedule enabled the fastest time-to-market for a refinery using this type of technology. This 2026, the facility has become operational.
Elon Musk echoed the significance of the project in posts on X, stating that “the largest Lithium refinery in America is now operational.” In a separate comment, Musk described the site as “the most advanced lithium refinery in the world” and emphasized that the facility is “very clean.”
By bringing large-scale lithium hydroxide production online in Texas, Tesla is positioning itself to reduce reliance on foreign refining capacity while supporting its growth in battery and vehicle production. The refinery also complements Tesla’s nascent domestic battery manufacturing efforts, which could very well be a difference maker in the market.
Elon Musk’s lawsuit against OpenAI and Microsoft is heading to jury trial
Tesla arsonist who burned Cybertruck sees end of FAFO journey
