Tesla Was Never Going to Set up Factory in Malaysia Despite Gov’t Meetings With Elon Musk

Tesla was never going to set up a factory here, as confirmed by the Ministry of Investment, Trade and Industry (MITI).

Rumour has it that Tesla is scrapping its plans to set up factories in Southeast Asia countries, including Thailand and Malaysia. The minister, Tengku Zafrul has since clarified the matter via an official statement last night (August 8).

No, MITI never issued an official statement about setting up a Tesla factory here in Malaysia, despite the meeting with the company’s CEO and PMX’s announcement earlier.

“We did have meetings with Elon Musk for investment purposes but Tesla has never made a commitment to set up a factory here,” Tengku Zafrul clarified.

So, were the talks with Elon Musk a waste of time? Tengku Zafrul said “Not at all.”

He said the government introduced the Global Electric Vehicle Battery Leader Initiative, which is open to any EV manufacturers including Tesla. It is to enhance the charging network for local EV owners and to increase the involvement of local companies in the EV charging ecosystem.

“The purpose of the initiative is to increase the network of chargers for the use of local EV vehicle owners in addition to increasing the participation of local companies in the EV charging ecosystem.”

Tengku Zafrul added that the rumours about Tesla scrapping its plan for factories in SEA countries were sourced anonymously, and not directly from MITI or Tesla.

“Regardless, MITI will continue to try to attract high-quality investment to Malaysia including continuing the strategy of attracting investment in the automotive industry, which is not limited to Tesla only. The local manufacturers also support Tesla’s global supply chain by supplying them with spare parts, components, and factory automation systems,”

“From 2022 to the first quarter of 2024, we have attracted investments worth RM24.55 billion in EV-related manufacturing activities.”

What do you think of Tengku’s statement on this? Do you foresee a day when Tesla eventually sets up a factory here?

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