News
Why Tesla’s road in India may end before it even starts
This is a preview from our weekly newsletter. Each week I go ‘Beyond the News’ and handcraft a special edition that includes my thoughts on the biggest stories, why it matters, and how it could impact the future.
For years, Indian citizens have pleaded with Tesla CEO Elon Musk about the possibility of the electric automaker building and delivering cars in the country. India, a large landmass that 1.366 billion people call home, has less than 1% of its 30 million cars being of an electric nature, the most sustainable way to operate a vehicle. However, Tesla aims to change that with an imminent entrance into India’s market. The problem is, Tesla’s road in India may end before it even begins, which would be a massive blow to the company and its supporters in the country, as Tesla fans have waited several years for any indication that the car company would finally make an appearance in their section of the world. But, strict regulations and inside political interests are halting the possibility, and it has people wondering whether the world’s leading electric car company will ever make it to the Indian automotive market.
Many of you who read Teslarati on a daily basis know that we have been tracking the situation in India since the early days. In fact, one of my first articles of 2021, while I was recovering from COVID-19 in January, was about the potential that Tesla had in India’s markets. Additionally, it seemed that some potential customers would be ready to order their first all-electric cars from the Silicon Valley-based electric car company by the time Q2 rolled around. However, these pieces of outlook from Musk were not met because the Indian government has shut down any attempt Tesla has made toward getting their products in the country without the hefty import duties. Unfortunately, it doesn’t seem as if they will be going away soon, either, as Prime Minister Narendra Modi, who has heavily supported the idea of local manufacturing efforts, will not be forced to leave his post or enter another election until 2024.
While local manufacturing is something Americans take a lot of pride in, especially with cars, there are undoubtedly advantages to building things domestically. First, companies must hire workers in the country that the business is stationed in. Next, the increase of manufacturing jobs not only improves the American economy, but it also provides job security for the millions of employees that are on assembly lines 40 hours (or more) a week. There are a lot of strengths in manufacturing things locally, but there is also room for foreign entities to bring their products into a market, especially if they can benefit a foreign economy like it does a domestic one.
Musk with Modi in 2015
This is something Tesla argued in its proposal letter to the Indian government a few weeks ago when it requested a reduction in import duties. The increase in Tesla imports would actually assist the country in developing a charging infrastructure, which would supply jobs to the energy sector and provide cleaner transportation options in a country where the climate and environment struggle heavily with smog and emissions. Additionally, Tesla would need a dedicated Service Center in several locations as India is a large country. Not to mention, showrooms would also provide some employment opportunities.
Musk has said that Tesla will not bring a Gigafactory to India without some sort of data that would support healthy demand, something that is obviously needed to justify building a near-billion dollar production plant in India. Doing this through imports is a tremendous idea, but 60% import taxes on sub-$40k vehicles, and 100% duties on $40,000 and up vehicles just will not get this done. Plain and simple. There needs to be some movement on the Indian government’s end.
However, the Indian politicians fail to realize that the economic and environmental advantages to having EVs in the country will be a better move long term. Instead, they fail to budge or even consider reducing import duties of any kind, at least to this point, which appears to discourage Tesla’s requests to enter the market. It would be a shame if no solution can be reached after this problem because I believe that the environmental impacts alone will be something that not only the Indian people will enjoy, but the people of the world will begin to see eventually. As the air begins to clear and the smog disperses, there could be a relative ease on the strong relationship with gas and oil India has. Sustainable energy could make its way to India within the next few years, and Tesla could see the potential for its biggest Gigafactory yet in India.
Think about the economic benefits a large-scale production facility could provide. Not only would it produce well-paying jobs, but it would also create a lot of them.
There are so many benefits for both Tesla and India if a deal can be worked out. But can it? In my opinion, Tesla may be better off delaying the India operation for another few years, when a fresh administration and new ideas can be thrown around about Tesla entering the market. It seems, for now, there won’t be much of a possibility, and Tesla may be better off expanding its efforts in the UK or elsewhere.
With that being said, I would love to hear how you feel about this issue. Is Tesla wasting its time trying to get things going in India? Should it try again in a few years? Do you feel progress can be made? Why or why not? If not India, then where should Tesla consider a new Gigafactory?
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Elon Musk
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
The Space Force just handed SpaceX $2.29 billion to build the military’s space internet backbone.
The U.S. Space Force awarded SpaceX a $2.29 billion contract on May 26, 2026 to build the backbone of its Space Data Network, a satellite-based communications system designed to keep American military forces connected anywhere on Earth in real time. The contract is firm-fixed-price and requires SpaceX to deliver a fully operational prototype by the end of 2027.
In plain terms, the SDN Backbone is the plumbing behind the military’s space-based internet. It functions as a low Earth orbit satellite constellation providing robust, high-capacity, and low-latency data transport for the Joint Force, connecting sensors and weapons systems continuously, globally, and securely. Think of it as a private, hardened version of Starlink built specifically for battlefield communications, one that soldiers, ships, and aircraft can rely on even in contested environments where ground-based networks have been disrupted.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The Space Force was direct about why SpaceX was selected. “The SDN Backbone leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set — a huge benefit and enabler for our warfighters,” said USSF Col. Ryan Frazier.
“We aren’t trading speed for scale; we are demanding both. By using rapid prototyping and Other Transaction Authorities, we are ensuring our advanced solutions are integrated and delivered to the warfighter as fast as possible,” added USSF Lt. Col. Fry, SDN Backbone system program manager.
The SDN Backbone will work alongside the Space Development Agency’s Transport Layer, with the two systems forming a unified open architecture to provide critical data transport for current and future Department of War missions.
As Teslarati has reported, this is not SpaceX’s first Space Force contract of 2026. In April, the Space Force awarded SpaceX $178.5 million to launch missile tracking satellites, and SpaceX is already embedded in the Golden Dome missile defense software group. The $2.29 billion SDN Backbone award puts SpaceX at the center of how the American military communicates in space, a position with direct implications for its reported $1.75 trillion IPO valuation as the company heads toward a public offering as early as June 2026.
Tesla’s dedicated factory for building up to ten million Optimus units is officially under construction at Gigafactory Texas.
Drone footage released on May 27 by Giga Texas observer Joe Tegtmeyer captures the significant milestone of the first steel structure officially standing at Tesla’s new Optimus factory on the North Campus of the facility.
Phase two of land reclamation is advancing steadily, and the progress will let the new building extend nearly the full length of the main Giga Texas factory, potentially exceeding 4,000 feet, while measuring somewhere between 50 and 70 meters narrower. Extensive foundation work is proceeding as well.
Big news at the new Optimus 10m/y factory construction site today! The 1st steel structure has been erected & as expected the second phase of land reclamation is underway.
This will allow this new factory to grow to nearly the same length as the main Giga Texas factory,… pic.twitter.com/FidRLV6XpU
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) May 27, 2026
This facility forms a central element of Tesla’s broader North Campus expansion at Giga Texas. The project will add more than 5.2 million square feet of new industrial space. It sits alongside other advanced developments, including a Terafab for next-gen AI chips. The scale reflects Tesla’s commitment to transforming humanoid robotics into a core pillar of the company’s future.
Musk has said that Optimus will be the biggest product in the world on several occasions. He believes it will be Tesla’s biggest valuation contributor.
Tesla prepares to expand Giga Texas with new Optimus production plant
Tesla plans to build about 10 million robots at the site annually once it is completed, which would be about 27,000 units each day.
The Optimus plant at Giga Texas is part of Tesla’s phased strategy for Optimus manufacturing. In an effort to start production of the robot well before the Giga Texas plant is complete, Tesla ended production of the Model S and Model X vehicles, which were built in Fremont, California, to make way for initial Optimus manufacturing efforts.
Production there will start in either July or August of this year, and early units will support internal factory tasks while the team gathers real-world data to refine processes. The Gigafactory Texas facility will house a second-gen production line. It targets high-volume output starting in Summer 2027.
Musk has repeatedly described Optimus as potentially more valuable than Tesla’s entire vehicle business. Current versions are already completing minor tasks around various facilities, while Tesla continues to refine its abilities and add new features.
Tesla’s total investment could reach several billion dollars. Significant challenges lie ahead, including the creation of an entirely new manufacturing ecosystem, the refinement of AI systems for dependable autonomy, and the development of reliable supply chains for actuators, sensors, and other components.
Nevertheless, the visible progress at Giga Texas highlights Tesla’s capacity to translate ambitious concepts into physical reality.
Tesla’s Optimus factory stands as much more than a simple expansion project, as it is quite literally the second phase of what could potentially be the biggest product ever. With construction beginning, 2027 is poised to become a transformative year for Tesla, as it evolves even further from an electric vehicle leader into a pioneer of intelligent, general-purpose machines.
Tesla Vice President of Vehicle Engineering, Lars Moravy, recently revealed the company has thought about introducing a Plaid powertrain on the Model 3, but there could be some challenges involved.
On the Ride the Lightning podcast, Moravy revealed that he thinks about a Plaid Model 3 “all the time,” and it certainly has a place in Tesla’s potential lineup of future vehicles.
Now that the Plaid powertrain is technically defunct due to the newfound absence of the Model S and Model X, Tesla could find a way to reintroduce the lightning-quick trim level to its mass-market vehicles.
But there are going to be some challenges with it. Moravy said that the Model 3 Plaid would likely adopt the carbon-sleeved motors that the Model S Plaid had. However, packaging would be a major challenge, as Moravy said on the podcast, it would be a “tight engineering squeeze.”
It’s important to note that there are no active production plans for the Model 3 Plaid at this point, but it’s also worth noting that with the Model S and Model X Plaid no longer available, Tesla would likely be willing to introduce something that is even more white-knuckle than the Model 3 Performance, which already boasts a 2.9-second 0-60 MPH acceleration rate and a top speed of 163 MPH.
Of course, there is the Roadster, but we don’t know when that will exactly make it to market, and we know that, for sure, it will not be accessible to many.
Tesla unveils juicy new detail on the Roadster and hints at new unveil timeline
Tesla has prided itself in building some of the best cars out there, but they’re also interested in building cars that are simply fun to be in.
A Plaid Model 3 could truly push the limits and could end up being one of the best cars Tesla will ever build, especially if it can shave off at least half of a second from its 0-60 MPH time and increase its top speed slightly.
More than anything, the real changes will be in the ride and aerodynamics. Tesla improving things like the suspension, handling, and downforce will be the true trademarks of its Plaid powertrain; putting it in the Model 3 could be a great move for the company and for customers interested in high-end performance.
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
Tesla’s dedicated Optimus factory construction officially underway at Giga Texas
