Tesla Abandons Plans for Electric Vehicle Factory in Thailand, Malaysia, and Indonesia
- tech360.tv
- Aug 8, 2024
- 2 min read
Tesla cancels plans for EV factory in Thailand, Malaysia, and Indonesia. Focus shifts to expanding charging stations globally. Prime Minister of Thailand had previously announced Tesla's interest in making Thailand a hub for EV manufacturing.
The shift in strategy comes after a group of Tesla executives who visited Thailand in November and December were laid off.
According to the source, "Tesla is currently only discussing charging stations, with the factory plans suspended not just in Thailand but worldwide. They are not proceeding in Malaysia, Indonesia, or anywhere else except for China, America, and Germany."
Last November, Prime Minister Srettha Thavisin had revealed plans for Tesla to make Thailand a focal point for its EV manufacturing. This announcement followed several meetings between the Prime Minister and Tesla executives in both the US and Thailand.
During his visit to the US for the 30th Apec Economic Leaders' Meeting in November, Srettha toured Tesla’s Fremont Factory in California, engaging with Tesla executives and even posing with a Cybertruck, Tesla’s flagship electric vehicle.
Additionally, Srettha and Pheu Thai Party leader Paetongtarn Shinawatra welcomed senior Tesla executive Rohan Patel at the Yi Peng festival in Chiang Mai on November 28.
Around the same period, the Prime Minister disclosed that Tesla was evaluating three potential factory locations in Thailand and was anticipated to announce an investment exceeding US$5 billion in the first quarter of this year.
However, Tesla has now opted to cancel its investment plans in Thailand following the dissolution of its executive team. This move is part of Tesla’s broader withdrawal of investments across Asia and beyond.
Earlier, Tesla had announced a pause in its plans to construct a gigafactory in Mexico until after the US presidential election in November, citing concerns over candidate Donald Trump’s promise to levy a 100% tariff on vehicles manufactured in Mexico.
The gigafactory near Monterrey in Nuevo Leon was initially unveiled in March last year and was projected to commence operations in the first quarter of 2025. Nevertheless, the project has encountered numerous setbacks and uncertainties.
By September 2023, some of Tesla's suppliers had slowed down their own initiatives to build new manufacturing facilities in Mexico due to fears that they would not be completed on schedule.
In October, Tesla confirmed the suspension of the project due to economic apprehensions.
Tesla cancels plans for EV factory in Thailand, Malaysia, and Indonesia.
Focus shifts to expanding charging stations globally.
Prime Minister of Thailand had previously announced Tesla's interest in making Thailand a hub for EV manufacturing.
Source: THE STAR
