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.
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Tesla is making two big upgrades to the Model 3, coding shows
According to coding found in the European and Chinese configurators, Tesla is planning to make two big upgrades: Black Headliner offerings and a new 16-inch QHD display, similar to that on the Model Y Performance.
Tesla is making two big upgrades to the Model 3, one of which is widely requested by owners and fans, and another that it has already started to make on some trim levels of other models within the lineup.
The changes appear to be taking effect in the European and Chinese markets, but these are expected to come to the United States based on what Tesla has done with the Model Y.
According to coding found in the European and Chinese configurators, Tesla is planning to make two big upgrades: Black Headliner offerings and a new 16-inch QHD display, similar to that on the Model Y Performance.
These changes in the coding were spotted by X user BERKANT, who shared the findings on the social media platform this morning:
🚨 Model 3 changes spotted in Tesla backend
• New interior code: IN3PB (Interior 3 Premium Black)
• Linked to Alcantara-style black headliner
• Mapped to 2026 Model 3 Performance and Premium VINs• EPC now shows: “Display_16_QHD”
• Multiple 2026 builds marked with… pic.twitter.com/OkDM5EdbTu— BERKANT (@Tesla_NL_TR) February 23, 2026
It appears these new upgrades will roll out with the Model 3 Performance and Tesla’s Premium trim levels of the all-electric sedan.
The changes are welcome. Tesla fans have been requesting that its Model 3 and Model Y offerings receive a black headliner, as even with the black interior options, the headliner is grey.
Tesla recently upgraded Model Y vehicles to this black headliner option, even in the United States, so it seems as if the Model 3 will get the same treatment as it appears to be getting in the Eastern hemisphere.
Tesla has been basically accentuating the Model 3 and Model Y with small upgrades that owners have been wanting, and it has been a focal point of the company’s future plans as it phases out other vehicles like the Model S and Model X.
Additionally, Tesla offered an excellent 0.99% APR last week on the Model 3, hoping to push more units out the door to support a strong Q1 delivery figure at the beginning of April.
Elon Musk
SpaceX secures FAA approval for 44 annual Starship launches in Florida
The FAA’s environmental review covers up to 44 launches annually, along with 44 Super Heavy booster landings and 44 upper-stage landings.
SpaceX has received environmental approval from the Federal Aviation Administration (FAA) to conduct up to 44 Starship-Super Heavy launches per year from Kennedy Space Center Launch Complex 39A in Florida.
The decision allows the company to proceed with plans tied to its next-generation launch system and future satellite deployments.
The FAA’s environmental review covers up to 44 launches annually, along with 44 Super Heavy booster landings and 44 upper-stage landings. The approval concludes the agency’s public comment period and outlines required mitigation measures related to noise, emissions, wildlife, and airspace management.
Construction of Starship infrastructure at Launch Complex 39A is nearing completion. The site, previously used for Apollo and space shuttle missions, is transitioning to support Starship operations, as noted in a Florida Today report.
If fully deployed across Kennedy Space Center and nearby Cape Canaveral Space Force Station, Starship activity on the Space Coast could exceed 120 launches annually, excluding tests. Separately, the U.S. Air Force has authorized repurposing Space Launch Complex 37 for potential additional Starship activity, pending further FAA airspace analysis.
The approval supports SpaceX’s long-term strategy, which includes deploying a large constellation of satellites intended to power space-based artificial intelligence data infrastructure. The company has previously indicated that expanded Starship capacity will be central to that effort.
The FAA review identified likely impacts from increased noise, nitrogen oxide emissions, and temporary airspace closures. Commercial flights may experience periodic delays during launch windows. The agency, however, determined these effects would be intermittent and manageable through scheduling, public notification, and worker safety protocols.
Wildlife protections are required under the approval, Florida Today noted. These include lighting controls to protect sea turtles, seasonal monitoring of scrub jays and beach mice, and restrictions on offshore landings to avoid coral reefs and right whale critical habitat. Recovery vessels must also carry trained observers to prevent collisions with protected marine species.
Elon Musk
Texas township wants The Boring Company to build it a Loop system
The township’s board unanimously approved an application to The Boring Company’s “Tunnel Vision Challenge.”
The Woodlands Township, Texas, has formally entered The Boring Company’s tunneling sweepstakes.
The township’s board unanimously approved an application to The Boring Company’s “Tunnel Vision Challenge,” which offers up to one mile of tunnel construction at no cost to a selected community.
The Woodlands’ proposal, dubbed “The Current,” features two parallel 12-foot-diameter tunnels beneath the Town Center corridor near The Waterway. Teslas would shuttle passengers between Waterway Square, Cynthia Woods Mitchell Pavilion, Town Green Park and nearby hotels during concerts and large-scale events, as noted in a Chron report.
Township officials framed the tunnel as a solution for the township’s traffic congestion issues. The Pavilion alone hosts more than 60 shows each year and can accommodate crowds of up to 16,500, often straining Lake Robbins Drive and surrounding intersections.
“We know we have traffic impacts and pedestrian movement challenges, especially in the Town Center area,” Chris Nunes, chief operating officer of The Woodlands Township, stated during the meeting.
“The Current” mirrors the Loop system operating beneath the Las Vegas Convention Center, where Tesla vehicles transport passengers through underground tunnels between venues and resorts.
The Boring Company issued its request for proposals (RFP) in mid-January, inviting cities and districts to pitch local uses for its tunneling technology. The Woodlands must submit its application by Feb. 23, though no timeline has been provided for when a winning community will be announced.
Nunes confirmed that the board has authorized a submission for “The Current’s” proposal, though he emphasized that the project is still in its preliminary stages.
“The Woodlands Township Board of Directors has authorized staff to submit an application to The Boring Company, which has issued an RFP for communities interested in leveraging their technology to address community challenges,” he said in a statement.
“The Board believes that an underground tunnel would provide a safe and efficient means to transport people to and from various high-use community amenities in our Town Center.”
Tesla is making two big upgrades to the Model 3, coding shows
SpaceX secures FAA approval for 44 annual Starship launches in Florida
