Tesla Cancels Plan To Open EV Factory In Thailand As Sales Slow
So is this only the end of Tesla’s supremacy or the end of EVs in general?
Tesla recently abandoned plans for establishing an electric vehicle (EV) manufacturing plant in Thailand, shifting its focus exclusively to the development of charging stations. This change in strategy comes after a series of significant developments, including the departure of a group of Tesla executives who had visited Thailand between November and December of last year.
According to a source at Government House, Tesla is no longer discussing the prospect of building a factory in Thailand or any other new manufacturing facilities outside of its established locations in China, the United States, and Germany. The decision to halt factory plans extends beyond Thailand, affecting potential sites in Malaysia, Indonesia, and other regions.
Moreover, this announcement marks a notable shift from earlier intentions. In November 2023, Thai Prime Minister Srettha Thavisin had eagerly anticipated Tesla’s commitment to making Thailand a central hub for its EV manufacturing operations. The prime minister’s optimism was bolstered by his series of meetings with Tesla executives both in the United States and Thailand.
During a visit to California for the 30th APEC Economic Leaders’ Meeting, Srettha also toured Tesla’s Fremont Factory, where he met with Tesla officials and engaged with the company’s latest flagship vehicle, the Cybertruck.
What’s more, on 28 November 2024, Srettha and Paetongtarn Shinawatra, leader of the ruling Pheu Thai Party, hosted Tesla senior executive Rohan Patel at the Yi Peng festival in Chiang Mai. During this period, the prime minister publicly stated that Tesla was evaluating three potential factory sites in Thailand, with an expected announcement of a substantial investment exceeding USD5 billion (roughly RM22.3 billion) in the early months of the current year.
However, in a surprising turn of events, Tesla has cancelled its investment plans for Thailand. This move is part of a broader strategy by Tesla to withdraw from various investment initiatives across Asia and beyond. Previously, Tesla had also paused plans to establish a gigafactory in Mexico.
Announced in March of the previous year, the factory near Monterrey, Nuevo León, was slated to commence operations in early 2025 but faced delays and uncertainty. The project’s pause was influenced by concerns surrounding a potential 100 percent tariff on vehicles made in Mexico, proposed by then-presidential candidate Donald Trump, as well as broader economic factors impacting the region.
We got this from The Nation Thailand and their full article is linked here. Thank you The Nation for the information and images.
Related Posts
Did You Know Mercedes-Benz Already Displayed Its First Electric Station Wagon In 1982 →
Volvo Introduces The New And Improved XC90 And EX90 Electric Spin Off →
Volvo Cars Sells 52,944 Cars Globally In August 2024 →
