Tesla halts plans for South-east Asia EV plants, focuses on charging stations: Report

KUALA LUMPUR – US electric vehicle (EV) maker Tesla has halted plans for establishing plants in Thailand and other South-east Asian nations, focusing instead on the development of charging facilities, a report on Thai news portal The Nation said on Aug 7.

Citing an unnamed government source, the report indicated that Tesla’s plans for manufacturing plants are not only suspended in Thailand but also in other South-east Asian countries, including Malaysia and Indonesia.

Following the disbandment of its executive team, Tesla has cancelled its investment plans in Thailand, marking a broader withdrawal from investments in Asia and beyond, the report said.

Its source said Tesla is currently focusing on discussions to develop charging stations.

“They are not proceeding (with factory plans) in Malaysia, Indonesia or anywhere else, except for China, America and Germany,” the report added.

The Malaysian Ministry of Investment, Trade and Industry (Miti) on Aug 8 clarified that The Nation’s report is based on an unnamed source and does not represent an official statement from Tesla. Miti emphasised that the commercial decisions of multinational companies regarding their global operations will not affect Malaysia’s industrial reforms or investment landscape.

In Malaysia, Tesla had in July 2023 committed to set up a country head office and service centres in Selangor.

Malaysian Prime Minister Anwar Ibrahim also mentioned that Tesla’s investment would create “tens of thousands of high-value jobs” for the country.

Under an agreement signed in February 2023, the company was allowed to sell vehicles assembled overseas without incurring import tariffs. The company was also granted exemption from having a local partner and the minimum 30 per cent bumiputera equity requirement.

THE BUSINESS TIMES