Tesla is ‘carefully’ working on its India entry amid tariff concerns, says CFO
Elon Musk meets with Indian Prime Minister Narendra Modi at Blair House in Washington DC, USA on February 13, 2025.
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Tesla is cautiously navigating an entry into India, CFO Vaibhav Taneja said on Tuesday in the U.S., as the electric vehicle maker faces falling sales and tariff threats.
Speaking on an earnings call, Taneja confirmed reports that the company is working on an expansion into India, adding that it would be a great market to enter, thanks to its “big middle class.”
Nevertheless, India is also “a very hard market,” with EV imports into the country subject to a 70% tariff and about 30% luxury tax, he said, noting that this could make India-sold Tesla’s twice as expensive, he said.
“That’s why we’ve been very careful trying to figure out when is the right time… these kinds of things create a little bit of tension, which we are trying to work out,” he added.
India has signaled interest in Tesla setting up a base in the country, though the country’s protectionist policies present some obstacles for the EV maker.
Taneja’s statements come just days after Tesla CEO Elon Musk spoke with India’s Prime Minister Narendra Modi on topics including collaboration on technology and innovation.
Modi also met with Musk during his visit to Washington, D.C., in February, fueling speculation about Tesla’s plans for India. That same month, sources told CNBC-TV18 that the company was considering importing EVs from its Berlin plant into the country as early as April.
On India’s part, the government has proposed a new policy that could see EV tariffs fall from about 70% to 15% for firms that plan to localize some manufacturing in the country.
Still, experts have told CNBC that Tesla would face price pressures under the scheme, with the company likely to push for further policy reforms.
However, American President Donald Trump’s new tariffs placed on U.S. trading partners, including India, could cast a cloud over potential negotiations between Tesla and New Delhi.
Washington has imposed additional tariffs of 10% on India, but these could rise by 26% if a 90-day pause on Trump’s “reciprocal tariffs” ends without a U.S.-India trade deal.
Vice President JD Vance met with Modi in India on Monday, hailing “significant” progress made in trade talks between the two countries.
Tesla reported disappointing first-quarter results Tuesday, including a 20% year-over-year drop in automotive revenue and a 71% slump in net income.
An Amazon worker moves boxes on Amazon Prime Day in the East Village of New York City, July 11, 2023.
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Amazon is extending its Prime Day discount bonanza, announcing that the annual sale will run four days this year.
The 96-hour event will start at 12:01 a.m. PT on July 8, and continue through July 11, Amazon said in a release.
For the first time, the company will roll out themed “deal drops” that change daily and are available “while supplies last.” Amazon has in recent years toyed with adding more limited-run and invite-only deals during Prime Day events to create a feeling of urgency or scarcity.
Amazon launched Prime Day in 2015 as a way to secure new members for its $139-a-year loyalty program, and to promote its own products and services while providing a sales boost in the middle of the year. In 2019, the company made Prime Day a 48-hour event, and it’s since added a second Prime Day-like event in the fall.
Prime Day is also a significant revenue driver for other retailers, which often host competing discount events.
Technology
SK Hynix shares extend gains to over 2-decade highs as parent group reportedly plans AI data center
OpenAI CEO Sam Altman speaks during the Snowflake Summit in San Francisco on June 2, 2025.
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OpenAI has been awarded a $200 million contract to provide the U.S. Defense Department with artificial intelligence tools.
The department announced the one-year contract on Monday, months after OpenAI said it would collaborate with defense technology startup Anduril to deploy advanced AI systems for “national security missions.”
“Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains,” the Defense Department said. It’s the first contract with OpenAI listed on the Department of Defense’s website.
Anduril received a $100 million defense contract in December. Weeks earlier, OpenAI rival Anthropic said it would work with Palantir and Amazon to supply its AI models to U.S. defense and intelligence agencies.
Sam Altman, OpenAI’s co-founder and CEO, said in a discussion with OpenAI board member and former National Security Agency leader Paul Nakasone at a Vanderbilt University event in April that “we have to and are proud to and really want to engage in national security areas.”
OpenAI did not immediately respond to a request for comment.
The Defense Department specified that the contract is with OpenAI Public Sector LLC, and that the work will mostly occur in the National Capital Region, which encompasses Washington, D.C., and several nearby counties in Maryland and Virginia.
Meanwhile, OpenAI is working to build additional computing power in the U.S. In January, Altman appeared alongside President Donald Trump at the White House to announce the $500 billion Stargate project to build AI infrastructure in the U.S.
The new contract will represent a small portion of revenue at OpenAI, which is generating over $10 billion in annualized sales. In March, the company announced a $40 billion financing round at a $300 billion valuation.
In April, Microsoft, which supplies cloud infrastructure to OpenAI, said the U.S. Defense Information Systems Agency has authorized the use of the Azure OpenAI service with secret classified information.
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