Tesla's factory plans scrapped due to losses and competition from China, says Anwar

KUALA LUMPUR: Tesla’s reported decision to abandon plans to build electric vehicle (EV) factories in Thailand, Malaysia and Indonesia has been attributed to business losses and competition from China, says Prime Minister Datuk Seri Anwar Ibrahim.

Anwar revealed that Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz had received the direct information regarding Tesla's situation.

"Zafrul has received the latest information. This is because Tesla is facing losses and cannot compete with EVs from China.

"This is the direct statement that we received, not from media coverage," he told the press after launching the management and governance guidelines for federal statutory bodies here today.

The Prime Minister was addressing questions about reports suggesting Tesla had shelved plans to build factories in the three Southeast Asian nations to concentrate on setting up charging stations.


While Tesla initially showed interest in Thailand, Anwar noted that its plans for Malaysia were still in the early stages.

Tesla currently operates sales offices and showrooms in Thailand and Malaysia.

In March, the Thai Prime Minister's office reportedly said that Tesla was in talks with the Thai government to build a production facility in the country, with Thailand offering a 100% green facility.

Following reports of the cancellation, Zafrul clarified that the ministry had never officially announced that Tesla would open a factory in Malaysia.

He added that Tesla had also never announced plans to build a factory in the country.

Zafrul had also said that the reports were not an official statement from Tesla but had quoted anonymous sources.