The New York Budgets

Author: Lara Jhonson

  • Tesla Set to Launch in India With Planned Showroom Opening

    Tesla Set to Launch in India With Planned Showroom Opening

    Tesla Inc. TSLA –.–%

    Mumbai, India – Tesla Inc. is set to make its long-awaited debut in India next week, officially entering the world’s third-largest automobile market with the opening of its first showroom in Mumbai.

    The U.S. electric vehicle (EV) pioneer will unveil its new Tesla Experience Center on July 15, located at the upscale Maker Maxity Mall in the Bandra Kurla Complex (BKC), Mumbai’s premier business district. According to an event invitation obtained by The NY Budgets, the launch event will run for approximately 90 minutes, marking a significant milestone for the company and Indian EV enthusiasts alike.

    The new Experience Center will showcase Tesla’s flagship EVs, including the Model 3 and Model Y, and serve as a hub for direct sales, test drives, and customer engagement. Tesla is expected to begin direct sales in India immediately following the launch, offering a fully digital ordering process through its official website and showroom network.

    This is Tesla’s first official presence in India after years of anticipation, regulatory hurdles, and discussions about tariffs and factory investments.

    Tesla CEO Elon Musk has long expressed interest in the Indian market. The company’s momentum picked up after a high-profile virtual meeting between Musk and Indian Prime Minister Narendra Modi in April. The two reportedly discussed cooperation in technology, renewable energy, and innovation.

    During the same month, Tesla’s Chief Financial Officer noted the company had been “very careful” in timing its India entry, signaling strategic caution given India’s complex regulatory and competitive landscape.

    Despite India’s population of over 1.4 billion and growing middle class, EV adoption has been slow due to infrastructure challenges, high upfront costs, and limited availability of premium EVs.

    Tesla will not manufacture locally in India, at least initially. Vehicles sold in India will be imported from its Shanghai Gigafactory in China and the Gigafactory Berlin-Brandenburg in Germany. This means Indian buyers may face import duties of up to 70%, making Tesla’s cars significantly more expensive compared to domestic EVs.

    India has offered incentives to reduce the import duty to 15% — but only for companies that invest $500 million or more in local manufacturing. However, according to Indian Minister of Heavy Industries, H.D. Kumaraswamy, Tesla currently has “no interest” in setting up a local plant.

    This stance may evolve if demand in India proves strong enough to justify local assembly or a full-scale Gigafactory.

    Tesla’s entry into India will put it in direct competition with major players in the local EV scene:

    BYD (Build Your Dreams), the Chinese EV giant, already operates in India with its Atto 3 electric SUV and E6 MPV. Tata Motors, a dominant domestic automaker, leads the Indian EV market with its affordable and widely accepted models like the Nexon EV and Tigor EV. Mahindra Electric and MG Motor India are also expanding their EV portfolios aggressively.

    While Tesla brings brand prestige and advanced software like Autopilot, its premium pricing may be a hurdle in a price-sensitive market.

    Tesla is already staffing up in India. According to LinkedIn job postings, Tesla is hiring in Mumbai for positions such as:

    India’s EV market is growing rapidly. According to industry estimates, EV sales in India surged 160% year-over-year in 2024, reaching over 1.5 million units. However, premium EVs make up less than 5% of total EV sales, indicating Tesla will initially be playing to a niche demographic.

    Still, India’s push for clean energy, rapid urbanization, and growing affluence in metro cities make it a potentially lucrative long-term market. Government-backed incentives under the FAME II scheme (Faster Adoption and Manufacturing of Electric Vehicles in India) have also been expanded to encourage adoption.

    If Tesla successfully navigates India’s tariff structure, infrastructure limitations, and price sensitivity, it could unlock a vast market with significant upside in the coming years.

  • Ford is still struggling to secure enough rare-earth magnets due to a supply shortage

    Ford is still struggling to secure enough rare-earth magnets due to a supply shortage

    Detroit, MI – Ford Motor Co. is facing a persistent supply shortage of rare-earth magnets—critical components for EV motors and various automotive systems—despite a recent U.S.–China agreement intended to ease export restrictions. The situation remains dire, forcing Ford into a “hand-to-mouth” rhythm to keep its production lines running.

    Last May, Ford halted production of its Explorer SUV at the Chicago Assembly plant for several days after its magnet supplier ran dry. These powerful rare-earth magnets—made from metals like neodymium, dysprosium, and terbium—are essential not only for EV motors but also for braking, steering, and seating systems.

    Lisa Drake, Ford’s VP of Industrial Planning for EVs, remarked that the company “still needs to move things around” to avert fresh shutdowns, admitting the operation remains “hand to mouth”. CEO Jim Farley echoed the concern in a recent Bloomberg interview: “It’s day-to-day… We have had to shut down factories. It’s hand-to-mouth right now.”

    Since April, China—which dominates 90% of global rare-earth magnet refinement—has enforced stricter export licensing rules on these metals, requiring detailed disclosures and slowing approval processes, WSJ reported.

    Although a temporary six-month agreement was struck in June to accelerate exports, affected automakers—including Ford—report little meaningful relief. Many export licenses continue to dribble in, primarily favoring larger, state-affiliated firms.

    Ford’s stock slipped nearly 1% on news of the supply disruptions—though year-to-date gains remain near 7%. At the same time, domestic mining and processing firms like MP Materials (NYSE: MP) and Freeport-McMoRan (NYSE: FCX) enjoyed surging stock prices as investors bet on a long-term shift toward U.S. production of critical minerals.

    Ford’s CFO recently disclosed that design improvements could cut annual rare-earth usage by up to 500,000 pounds, and the new hybrid systems already consume 50% less neodymium per vehicle. While the automaker is mapping raw-material sourcing directly back to mines, those efforts will take years to offset immediate shortages.

    Analyst Michelle Krebs of AutoForecast Solutions warns, “Every OEM assumed they could scale battery production linearly. The rare-earth situation proves how quickly geopolitical factors can disrupt those plans”.

    Continued supply volatility; potential further single-shift delays or plant pauses if authorization backlogs persist. Push for non-Chinese magnet sources (Canada, Australia, U.S.) and increased recycling, but industrial-scale capacity remains 2–3 years off. Deep investment in domestic mining and refining will diminish supply chain chokepoints—but remains a strategic and political challenge.

    Ford remains committed to its 2 million EVs-per-year goal by 2026, but acknowledges that resolving this bottleneck is crucial for meeting that target.

    The magnet logjam is more than an automotive hiccup—it’s a flashpoint in global industrial policy. “China’s dominance in rare earths is a geopolitical weapon,” says an analyst at the Center for Strategic and International Studies. “There’s no quick fix—this is a wake-up call”.

    Even with diplomatic progress and asset-light design pivots, Ford remains locked in a daily scramble for magnets that may define its EV production trajectory—and automobile manufacturing’s broader global supply resilience.

  • Longtime Musk Aide and “Fixer” Omead Afshar Departs Tesla Amid Sales Slump

    Longtime Musk Aide and “Fixer” Omead Afshar Departs Tesla Amid Sales Slump

    Omead Afshar, a veteran Tesla executive long known as Elon Musk’s personal “fixer,” has quietly exited the company, marking a notable shift in the automaker’s leadership structure.

    Afshar—who joined Tesla in 2017 and rose to prominence by overseeing the Texas Gigafactory construction and serving in the Office of the CEO—had recently been appointed vice president of sales and manufacturing for North America and Europe back in October 2024. However, he has now left amid one of the most challenging periods in Tesla’s recent history: global vehicle deliveries fell by 13% in Q1 2025, European deliveries plunged ~40% in May, and profitability dropped sharply by 71%.

    According to reports, Afshar’s name disappeared from Tesla’s internal directory, and he has ceased all corporate communication channels. The Wall Street Journal and Reuters attribute his departure to the broader struggles Tesla is facing—especially increased competition from Chinese EV makers and scrutiny over Elon Musk’s political entanglements. His exit aligns with other high-profile resignations, including that of North America HR head Jenna Ferrua and Milan Kovac, former VP of Optimus robotics.

    Notably, his departure comes just days after he posted praise for the Austin robotaxi pilot on X: “Absolutely historic day for Tesla… Thank you, Elon, for pushing us all!” .

    Tesla shares, which have fallen roughly 19% year‑to‑date, saw a brief dip following news of Afshar’s exit but stabilized shortly thereafter. Analysts say the move is likely meant to reassure investors that Tesla’s board is taking concrete action to arrest the operational slide.

    Second-quarter delivery results, due next week, will be under intense scrutiny. Equity analysts project a further 10% drop in deliveries—potentially to around 392,800 vehicles globally for Q2—compared to 443,956 units last year.

    Benchmark analyst remarks suggest longer-term confidence remains tied to Tesla’s ambitious pivot toward AI and autonomy, such as the robotaxi program and Optimus humanoid initiative—even as traditional sales sag.

    Tom Zhu, Tesla’s global automotive head, is expected to temporarily absorb Afshar’s duties for North America and Europe—he already heads the Asia‑Pacific operations, reported WSJ.

    Industry watchers view Afshar’s exit as part of a broader restructuring effort that aligns with Tesla’s shift toward AI and robotics.

    With aging legacy models and mounting competition from both Western and Chinese automakers, Tesla is under pressure to roll out new products or aggressive pricing to regain market share.

    Omead Afshar’s departure represents more than a personnel change—it reflects Tesla’s accelerating pivot away from conventional automotive dominance to a future defined by autonomy, robotics, and AI. Whether this signals a rejuvenation or further fragmentation remains to be seen. Q2 delivery results will be a key indicator.