According to a report, Tesla, the US electric vehicle (EV) manufacturer, has paused its plans to build factories in Thailand and other Southeast Asian countries. Instead, the company is concentrating on expanding its charging infrastructure. An unnamed government source revealed that Tesla's manufacturing plant projects are on hold not just in Thailand but also in Malaysia and Indonesia.
Following the dissolution of its executive team, Tesla has scrapped its investment plans in Thailand, reflecting a wider pullback from investments in Asia and other regions, according to the report. The source mentioned that Tesla is now concentrating on discussions related to the development of charging stations. “They are not proceeding (factory plans) in Malaysia, Indonesia, or anywhere else, except for China, America and Germany”, said the report.
The Malaysian Ministry of Investment, Trade and Industry (MITI) clarified that the report, which relied on an unnamed source, does not reflect an official statement from Tesla. MITI stressed that the commercial decisions of multinational companies regarding their global operations will not impact Malaysia’s industrial reforms or investment climate. In July 2023, Tesla had committed to establishing a country headquarters and service centers in Selangor, Malaysia.
Malaysian Prime Minister Anwar Ibrahim also highlighted that Tesla's investment is expected to generate “tens of thousands of high-value jobs” for the country. As part of an agreement signed in February 2023, Tesla was permitted to sell vehicles assembled abroad without facing import tariffs. Additionally, the company was granted exemptions from partnering with a local entity and from the 30 percent Bumiputera equity requirement.