Tesla Inc has scrapped plans to set up factories in Malaysia, Thailand, and Indonesia. According to Thai news portal The Nation, the electric car maker will focus solely on setting up charging stations in these countries.
The Nation reported that Tesla also decided to cancel its investment plan in Thailand after disbanding its executive team as part of the company’s plan to withdraw investment across Asia and beyond.
Tesla is said to be focusing on larger EV markets such as China, America, and Germany.
However, a source from Malaysia’s Ministry of Investment, Trade, and Industry (MITI) dismissed the report, stating that it was not an official statement from Tesla and there was no official confirmation from the company.
Previously, Prime Minister Datuk Seri Anwar Ibrahim had a meeting with Tesla’s owner Elon Musk to seek further investments from Tesla.
Under the terms of the agreement signed in February 2023, Tesla is allowed to sell its vehicles assembled abroad in Malaysia without any import tariffs.
Tesla was also exempted from having a local partner and the minimum 30% Bumiputera equity rule.
With this, Tesla began selling its cars months later and there were talks to open its headquarters and service centre in Selangor and sales office in key areas in the country.
In addition, Musk’s Starlink was also allowed to operate in the country as a foreign-owned entity after the government waived the ceiling of 49%.
It’s the biggest “I told you so” ever
This latest news of Tesla’s factory plan withdrawal drew criticism from many people online. Most pointed out how Anwar bent over backwards to get Musk to invest his business in the country by giving his businesses various exemptions only to be blindsided.
The disappointment largely comes from those who have previously predicted Musk’s unreliable and untrustworthy behaviour.
On the other hand, a netizen claimed Tesla did not want to build a factory in Malaysia due to its smaller market size for EV vehicles. The person claimed Tesla planned to focus on regions where it could scale more effectively and compete better on the global market.
Some are happy that Tesla isn’t opening a manufacturing facility here and believe Malaysia should open the market to more Chinese EVs. They believe Musk pulled out because he’s facing stiff competition from the Chinese EV market.
Elon con you fellas to buy his product, get tax exemption. Now pulled plug. He’s that kinda person.
— Eddie (@eddienglfc) August 7, 2024
Malaysia was so eager to attract Elon Musk to invest in the country that it exempted Tesla from having to work with a local partner.
Then, it got gamed.
“Tesla scraps plans for EV plant in Thailand, Malaysia, Indonesia”https://t.co/KJCUq7xX9F
— Hadi Azmi (@amerhadiazmi) August 7, 2024
This should be much bigger news: the Malaysian government got absolutely CONNED by Elon Musk, bending over backwards for him in embarrassingly sycophantic ways (to an audience that doesn’t even admire Musk), giving Tesla undeserved privileges, only to get jack shit in return. https://t.co/8Gxysdt0Rp
— Amirul Ruslan (@amirulruslan) August 7, 2024
Tesla did not select Malaysia for EV manufacturing primarily due to its smaller market size. While Indonesia was initially considered, largely because of its large middle-class population and abundant natural resources like cobalt, which is essential for battery production, Tesla…
— Mustapa Osman (@mustapa2008) August 8, 2024
To me, this is good news! We should also open our market to more Chinese EVs so Tesla can bungkus.
— Aqil, Qassam Rspctr (@aqilqassam) August 7, 2024
Malaysia would be better off without Elon Musk’s investment. I am sure Chinese companies can invest in the Malaysian auto industry on much better terms.
— Munawar Abadullah (@MAbadullah) August 7, 2024
Tesla is having a hard time competing with Chunese EV.
— Jaffarikahfi (@jaffarikahfi) August 7, 2024
