Tesla Supposedly Axes Plans For Factories in Malaysia and Southeast Asia
Tesla has reportedly scrapped plans to build factories in Southeast Asia, including Malaysia, Thailand, and Indonesia, according to a Thai news portal. The Nation, citing an unnamed government source, claims the EV brand will now focus solely on establishing charging stations in the region.
“Tesla is currently only discussing charging stations, with the factory plans suspended not just in Thailand but worldwide,” The Nation reported. “They are not proceeding in Malaysia, Indonesia or anywhere else except for China, America and Germany.”
This news comes despite an agreement signed in February 2023 that allowed Tesla to sell its foreign-assembled vehicles in Malaysia without import tariffs. The deal also exempted the company from needing a local partner and adhering to the minimum 30% Bumiputera equity rule.
Following the agreement, Tesla began selling its cars in Malaysia and announced plans to open a headquarters and service centre in Selangor, along with sales offices in major cities. Additionally, the company committed to building a network of fast-charging and regular charging stations across the nation.
The Malaysian government, particularly Prime Minister Datuk Seri Anwar Ibrahim, actively courted Tesla for further investments. This included allowing Elon Musk’s satellite internet company, Starlink, to operate with full foreign ownership after the government waived the previous 49% foreign ownership limit.
While the report from The Nation remains unconfirmed by Tesla itself, it suggests a potential shift in the company’s Southeast Asian strategy. As the situation develops, it will be interesting to see if Tesla officially confirms the news and clarifies its future plans for the region.
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