Tesla has scrapped its intentions to build electric vehicle (EV) factories in Thailand, Malaysia, and Indonesia, shifting its focus exclusively to establishing charging stations. This development was reported by The Nation, citing information from a Thai government insider.
The decision to abandon factory projects in the ASEAN region follows the dismissal of the Tesla executive team that visited Thailand in the previous year. The source revealed that Tesla is now concentrating solely on charging infrastructure, with factory plans paused not only in Thailand but also across the ASEAN region, including Malaysia and Indonesia. The company will continue its manufacturing activities only in China, the United States, and Germany.
In November 2023, Thai Prime Minister Srettha Thavisin announced that Tesla was set to turn Thailand into a major EV manufacturing hub. This announcement followed several meetings with Tesla executives and a visit to Tesla’s Fremont factory during the APEC Economic Leaders’ Meeting.
During the Yi Peng festival in Chiang Mai, Srettha and Paetongtarn Shinawatra hosted Tesla executive Rohan Patel, who had indicated that Tesla was evaluating three potential factory locations in Thailand and was expected to invest over US$5 billion by the first quarter of 2024.
However, according to the government source, Tesla has since reversed these plans and dismantled the executive team responsible. This change is part of Tesla’s broader strategy to retract from investments in Asia and other regions.
Additionally, Tesla’s planned gigafactory in Mexico, announced in March 2023, has also encountered delays, partly due to uncertainties surrounding a proposed 100% tariff on Mexican-made vehicles by US presidential candidate Donald Trump. In October 2023, Tesla confirmed that it had suspended the project due to economic concerns.