Tesla Expands Charging Stations in Malaysia but Halts Factory Plans
Source: SAYS
Tesla’s latest moves bring a mix of good and bad news. Let’s start with the bad: Tesla has decided to halt its plans for building factories in Malaysia.
According to The Nation, a Thai news portal, Elon Musk’s company has suspended its factory plans not only in Malaysia but also in Thailand and Indonesia. “Tesla is currently only discussing charging stations, with the factory plans suspended not just in Thailand but worldwide,” the portal reported on 7 August.
Factory Plans on Hold
Despite halting factory plans in Southeast Asia, Tesla will continue with its factory projects in China, the US, and Germany. The company has also laid off its executive team responsible for overseeing the production in the Southeast Asian region.
Back in February 2023, Tesla had signed a deal with Malaysia to sell its imported vehicles without facing import tariffs. The deal included exemptions for the company if they partnered locally and met a 30% Bumiputera equity requirement. This allowed Tesla to start selling cars in Malaysia from March 2023, with plans to open a headquarters and service center in Selangor and sales offices in major cities.
Charging Stations to Increase
On the positive side, Tesla remains committed to enhancing its charging infrastructure in Malaysia. As part of the deal with the Malaysian government, Tesla promised to invest in fast-charging and regular-charging stations across the country. This is great news for Tesla owners who will benefit from more convenient charging options.
Additionally, Elon Musk’s other venture, Starlink, received permission to establish offices in Malaysia after getting a 49% ceiling waiver.
Strategic Move
Reports indicate that Tesla’s decision to cancel the factory plans in Southeast Asia is part of a broader investment strategy to divest from certain regions. While the halt on factories might disappoint some, the increased focus on charging infrastructure and continued global factory projects show Tesla’s strategic adaptation to the evolving market.
