(Aug 7): Tesla Inc has scrapped plans to set up factories in Malaysia, Thailand, and Indonesia, and the US electric car maker will focus solely on charging stations, Thai online news portal The Nation reported on Wednesday.

"Tesla is currently only discussing charging stations, with the factory plans suspended not just in Thailand but worldwide,” The Nation reported citing an unidentified source in the government. “They are not proceeding in Malaysia, Indonesia or anywhere else except for China, America and Germany.”

Tesla has now decided to cancel its investment plan in Thailand after disbanding its executive team, The Nation said. The decision is part of Tesla’s withdrawal of investment across Asia and beyond, it added.

Under the terms of the agreement signed in February 2023, Tesla will be able to sell its vehicles assembled abroad in Malaysia without any import tariffs. The company was also granted exemption from having a local partner as well as the minimum 30% Bumiputera equity rule.

Tesla began selling its cars months later, and planned to open its headquarters and service centre in Selangor and sales office in key metropolitan areas in the country. Tesla also committed to investing in setting up a network of fast-charging and regular-charging stations across Malaysia.

Prime Minister Datuk Seri Anwar Ibrahim also courted Tesla’s billionaire owner Elon Musk for further investments from Tesla. Musk’s other business Starlink was also allowed to operate in the country with full foreign ownership after the government waived the ceiling of 49%.