Tesla has decided to scrap its plans to set up an electric vehicle (EV) manufacturing plant in Thailand, shifting its focus solely to establishing charging stations in the region. This decision is part of a broader strategy where Tesla has suspended plans for EV factories not only in Thailand but also in Malaysia, Indonesia, and other regions, except for China, the United States, and Germany.
Shifting Gears: Company Focuses on Charging Infrastructure as Southeast Asian Factory Dreams Fade
The initial plan to make Thailand a hub for Tesla’s EV manufacturing was announced by Prime Minister Srettha Thavisin in November last year. This announcement followed a series of meetings between Thai officials and Tesla executives, including a visit by Srettha to Tesla’s Fremont Factory in California during the APEC Economic Leaders’ Meeting. At that time, Tesla was reportedly surveying three potential sites in Thailand and was expected to announce an investment of over $5 billion in the first quarter of 2024.
Recent Developments and Strategic Pauses
However, the recent decision to halt these plans follows the disbandment of a team of Tesla executives who visited Thailand in late 2023. The move is part of Tesla’s broader withdrawal of investment plans across Asia, with similar suspensions in other countries in the region.
This development comes amid other strategic pauses by Tesla, such as the delay of a gigafactory project in Mexico, which has faced multiple delays due to economic concerns and political factors, including proposed tariffs by U.S. presidential candidate Donald Trump.
