Tesla’s Thailand gamble: EV plans still in the slow lane

Tesla’s investment plans in Thailand remain uncertain as the Government of Thailand awaits confirmation from the United States-based electric vehicle (EV) maker. Government spokesperson Chai Wacharonke highlighted that Tesla is reassessing its global investment strategy, which has been affected by slowing sales growth and intense competition, particularly from Chinese EV manufacturers.

Reports suggest Tesla aims to concentrate on its existing major production bases in the US, China, and Germany, said Chai.

“Tesla is reviewing its investment plans worldwide, not just in Thailand. However, there has been no confirmation [about halting the investment plan in Thailand] from the company. It’s been reported in the news. We’re waiting to hear from them.”

In April, Tesla announced plans to utilise its current factories to produce new, more affordable vehicles, making investments in new sites in Mexico and India unlikely in the near future. Meanwhile, Indonesia is also waiting for an update on a planned EV battery manufacturing plant. In 2022, Tesla signed an agreement to source up to US$5 billion worth of nickel from Indonesia for use in EV batteries.

Prime Minister Srettha Thavisin first disclosed Tesla’s interest in Thailand following a meeting with CEO Elon Musk during the UN General Assembly in New York last September. The Thai premier visited Tesla’s Fremont factory in California in November, where he reportedly encouraged Tesla to invest in Thailand.

PM Srettha also invited Tesla’s deputy chief of investment to visit an industrial estate in the Eastern Economic Corridor and attend Loy Krathong celebrations in Chiang Mai later that same month.

Tesla investments

However, the South China Morning Post reported on Friday that Tesla no longer appears to be interested in planned investments in Thailand or Malaysia. In Thailand, it was reported that Tesla had decided to invest only in EV charging stations.

After Tuesday’s Cabinet meeting, the Bangkok-born PM stated that he did not know of reports suggesting Tesla may have decided against investing in Thailand.

“All I am aware of is that teams from the government and the company are still in talks about a business plan.”

The Thai prime minister mentioned that during his initial discussions with Tesla, the company was drawn to India’s large market, but Thailand seemed a promising location for a production plant.

Tesla’s strategic decisions are being closely watched as they could significantly impact the EV market in the region. The government’s anticipation of Tesla’s final decision underscores the broader implications for Thailand’s industrial and economic strategies.