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Volkswagen teams with Tesla to slash India import duties

(Credit: Herbert Diess/LinkedIn)

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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.

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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.

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“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.

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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SpaceX Board has set a Mars bonus for Elon Musk

SpaceX has given Elon Musk the goal to put one million people on Mars.

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Rendering of a colonized Mars by way of SpaceX

SpaceX’s board approved a compensation plan for Elon Musk that ties his pay directly to colonizing Mars and building data centers in outer space. The details surfaced this week after Reuters reviewed SpaceX’s confidential registration statement filed with the Securities and Exchange Commission, making it one of the first concrete looks inside the company’s financials ahead of a public offering.

The pay package will reportedly award Musk 200 million super-voting restricted shares if the company hits a market valuation milestone, with the most ambitious targets going further. To unlock the full award, SpaceX would need to reach a $7.5 trillion valuation and help establish a permanent human settlement on Mars with at least one million residents. Additional incentives are tied to developing space-based computing infrastructure capable of delivering at least 100 terawatts of processing power.

SpaceX wins its first MARS contract but it comes with a catch

Long before SpaceX filed anything with the SEC, Elon Musk had already spent years framing Mars colonization as an insurance policy against human extinction. The philosophy traces back to at least 2001, when Musk first began researching Mars missions independently, before SpaceX even existed. By 2002 he had founded the company with Mars as the stated long-term goal.

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In a 2017 presentation at the International Astronautical Congress, Musk outlined the specific vision that still underpins SpaceX’s architecture today. He described a self-sustaining city on Mars requiring roughly one million people to become viable, the same number now written into his compensation package.

SpaceX’s Starship, still in active development, was designed from the ground up to support the eventual colonization of Mars. Musk has stated publicly that getting the cost per ton to Mars below $100,000 is necessary to make mass migration economically feasible. Everything from Starship’s payload capacity to its full reusability targets flows from that single constraint. One can say that Musk’s latest compensation package has put a formal valuation on Mars for the first time.

SpaceX is targeting an IPO around June 28, Musk’s birthday, at a valuation of approximately $1.75 trillion. Between the Mars rover contract, the Golden Dome software group, Space Force satellite launches, and now a pay structure built around interplanetary colonization, SpaceX has become the single most consequential contractor in American space and defense. The IPO will put a public price tag on all of it for the first time.

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Tesla’s biggest rivals fights charging wait times with a modern approach

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Tesla V4 Supercharger installation ramping in Europe

Earlier this week, we wrote a story on how Tesla is launching a new Supercharging Queue system to mitigate problems between drivers when there is a wait to charge.

Rather than potentially having people end up in a physical conflict, Tesla’s approach is to determine who is next to charge based on geographic data.

Tesla launches solution to end Supercharger fights once and for all

But some companies, notably Tesla’s biggest rival in China, BYD, are taking a different approach, focusing on charging speeds rather than how they will manage delays.

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BYD’s approach, especially with its tests of ultra-fast “Flash Charging” technology, is to eliminate the length of a charging session. At the heart of this strategy is BYD’s second-generation Blade Battery paired with 1,500-kW Flash Chargers.

Unveiled earlier this year, the system charges compatible vehicles from 10 percent to 70 percent state of charge in just five minutes and from 10 percent to 97 percent in nine minutes.

Real-world demonstrations on models like the Yangwang U7 and Denza Z9 GT have shown the tech delivering roughly 250 miles (400 kilometers) of range in just five minutes. This would essentially match or beat the time it takes to fill a gas tank.

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Sometimes, gas pumps get congested, and there are lines. You rarely see conflicts at pumps because filling up a tank rarely takes more than five minutes.

Tesla’s fastest Supercharger build currently is the v4, which can deliver up to 325 kW for Cybertruck and 250 kW for other models, but there are “true” sites that are capable of up to 500 kW. This enables speeds of up to 1,000 miles per hour, or 1,400 miles for 350 kW-capable vehicles.

The breakthrough stems from BYD’s vertically integrated ecosystem: a new 1,000-volt architecture, 10C charging rates, and proprietary silicon-carbide chips that minimize internal resistance while protecting battery health.

The company plans to install 20,000 Flash Charging stations across China by the end of 2026, with thousands already operational and global expansion eyed for Europe and beyond later this year.

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Early rollout targets popular models, including upgrades to high-volume sellers like the Seal and Sealion series, bringing five-minute charging to mainstream prices around 100,000 yuan (about $14,000).

This approach contrasts sharply with Tesla’s software solution. Tesla’s Virtual Queue uses geofencing and the app to assign turns at crowded sites, addressing driver disputes and idle time. It’s a clever fix for today’s network realities.

Yet, BYD’s philosophy is simpler: make charging so fast that waits barely exist. A five-minute stop becomes as convenient as a gas-station visit, reducing station dwell time, easing grid strain, and lowering range anxiety for long trips.

For consumers, the difference is potentially tangible. They’ll spend more time driving and less time parked. It is just another way Tesla and BYD are pushing one another to improve the overall experience of EV ownership.

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Tesla wins big as NHTSA drops three-year, 120k unit probe against Model Y

In all, 120,089 Model Ys were impacted, but in two cases, drivers reported the complete detachment of the steering wheel from the steering column while the vehicle was in motion. NHTSA’s initial review revealed that the vehicles had been delivered without the critical retaining bolt that secures the steering wheel to the splined steering column.

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Credit: Tesla Asia | X

A probe into over 120,000 2023 Tesla Model Y units has been closed by the National Highway Traffic Safety Administration (NHTSA). The probe ends without the agency requiring any action from Tesla.

The probe, designated PE23-003, opened in March 2023 and stemmed from just two consumer complaints involving low-mileage Model Y SUVs.

In all, 120,089 Model Ys were impacted, but in two cases, drivers reported the complete detachment of the steering wheel from the steering column while the vehicle was in motion. NHTSA’s initial review revealed that the vehicles had been delivered without the critical retaining bolt that secures the steering wheel to the splined steering column.

Factory records showed each car had undergone an “end-of-line” repair at Tesla’s facility, during which the steering wheel was removed and reinstalled. The bolt was apparently omitted after the repair, leaving only a friction fit between the wheel and column to hold it in place temporarily.

According to NHTSA documents, this friction fit maintained the connection during initial low-mileage driving until forces during normal operation caused the wheel to detach. Both vehicles that were impacted were repaired under warranty with no injuries reported, and no additional incidents surfaced during the agency’s three-year review.

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Tesla Model Y steering wheel detachments prompt NHTSA probe

After analyzing manufacturing processes, complaint data, and field reports, NHTSA concluded the issue was isolated to those two post-repair vehicles rather than indicative of a systemic defect in Tesla’s production or quality control.

The closure means the agency has determined no recall or further enforcement is warranted for this specific missing-bolt condition.

This outcome marks the second NHTSA investigation into Tesla closed without action this month, as a recent probe into the company’s “Actually Smart Summon” feature was also resolved in April.

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Tesla Full Self-Driving feature probe closed by NHTSA

The two resolutions provide some relief for Tesla amid the continuous and somewhat unfair regulatory scrutiny of its vehicles, including open inquiries into driver assistance systems.

Importantly, the closed probe does not involve or affect Tesla’s separate May 2023 voluntary recall of certain 2022-2023 Model Y vehicles. That recall addressed a different issue—steering-wheel fasteners that were installed but not torqued to specification—prompted by a service technician’s observation of a loose wheel during unrelated repairs.

Tesla identified a small number of related warranty claims and proactively addressed the matter without NHTSA mandate.

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The Model Y remains one of the world’s best-selling vehicles, and Tesla continues to refine its lineup, including the recent “Juniper” refresh. While federal oversight of the electric vehicle pioneer remains intense, this decision underscores that isolated manufacturing anomalies do not always translate into broader safety defects requiring recalls.

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