KUALA LUMPUR (Aug 8): Tesla Inc has never committed to opening a factory in Malaysia, said Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
In a post on X, formerly known as Twitter, Zafrul explained that the Ministry of Investment, Trade and Industry (Miti) had engaged in discussions with Tesla founder Elon Musk in efforts to attract investment, but these discussions did not involve setting up a factory.
“Firstly, the foreign news report was not an official statement from Tesla, but rather quoted anonymous or unnamed sources. Reporters need to verify the authenticity of this news with Tesla, as the source of this news is not from Tesla.
“Secondly, Miti has never announced that Tesla will open a factory in Malaysia. We have had discussions with Musk in efforts to attract investment, but Tesla has never committed to opening a factory here,” Zafrul said.
The minister made these comments in response to a report from a Thai online news portal, The Nation, which cited unnamed sources within the government regarding Tesla’s cancellation of plans to develop factories in Malaysia, Thailand, and Indonesia.
The report also stated that Tesla’s current discussions are only focused on efforts related to charging stations, and had suspended plans to develop factories not just in Thailand, but globally.
“Tesla is not proceeding with plans in Malaysia, Indonesia, or other locations except in China, the US, and Germany,” the news portal reported.
On July 20 last year, the leading US multinational electric automotive manufacturer announced its strategic expansion into the Malaysian market through Tesla Malaysia Sdn Bhd.
According to a joint statement from Tesla and the Malaysian Investment Development Authority (Mida), this move was a direct response to the Battery Electric Vehicle (BEV) Global Leaders Initiative introduced by Miti.
In addition to introducing a range of advanced electric vehicles (EVs) to Malaysian consumers, Tesla was also committed to investing in a comprehensive network of fast and standard charging stations across strategic locations in Malaysia, as well as establishing its state-of-the-art headquarters and service centre in Cyberjaya, Selangor.
Meanwhile, Zafrul stated that in efforts to strengthen the EV ecosystem, the BEV Global Leaders Initiative is open to EV manufacturers.
Among the requirements are the installation of at least 50 ultra-fast chargers with capacities exceeding 180 kWh, and ensuring that at least 30% of these ultra-fast chargers in Malaysia are open for public use, namely for brands other than the company’s brand.
Additionally, interested EV manufacturers must collaborate with at least 10 local companies to develop the EV charging industry ecosystem, including employing local contractors for EV charging installation, and suppliers of equipment such as transformers and cables, among others.
Zafrul added that the purpose of the initiative is to enhance the charging network for local EV owners, and increase local company participation in the EV charging ecosystem.
“Through similar programmes, countries such as China, Hong Kong, and Norway have accelerated the shift to EVs. As this happens, many local small and medium enterprises would benefit from participating in the EV ecosystem.
“So far, only Tesla has applied and been approved for participation in the BEV Global Leaders Initiative, but we welcome other EV manufacturers to join. So, when it is said that Tesla receives special treatment, that is not accurate; any company can apply for this initiative,” he said.
In this context, the minister said Miti will continue to work on attracting high-quality investment into Malaysia, including continuing strategies to attract investment in the automotive industry beyond just Tesla.
“From 2022 to the first quarter of 2024, we attracted RM24.55 billion in investment for EV-related manufacturing activities from companies such as Chery, Gemilang Coachwork, Samsung SDI Energy, NexV Manufacturing, and Eve Energy.
“Our local manufacturers also support Tesla’s global supply chain by providing spare parts, components, and factory automation systems,” Zafrul said.
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