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[KUALA LUMPUR] Tesla has halted its plans to build plants in Thailand and other parts of South-east Asia, with the US electric vehicle manufacturer preferring to focus on the development of charging facilities instead.

A report on Thai news portal The Nation on Wednesday (Aug 7), which cited an unnamed government source, said that Tesla has suspended its plans to build facilities in Thailand and other countries in the region such as Malaysia and Indonesia.

Following the disbandment of its executive team, Tesla has cancelled its investment plans in Thailand, marking a broader withdrawal from investments in Asia and beyond, said the report.

The source was quoted as saying that Tesla would focus its resources on developing charging stations.

“They are not proceeding (with the factory plans) in Malaysia, Indonesia or anywhere else, except for China, the US and Germany,” said the report.

The Malaysian Ministry of Investment, Trade and Industry on Thursday clarified that The Nation’s report was based on an unnamed source and did not represent an official statement from Tesla.

The ministry added that the commercial decisions of multinational companies regarding their global operations will not affect Malaysia’s industrial reforms or investment landscape.

In July 2023, Tesla had committed to set up a country head office and service centres in Malaysia.

That month, Malaysian Prime Minister Anwar Ibrahim said that tens of thousands of high-value jobs would be created as a result of Tesla’s massive investment in the country.

As part of an agreement signed in February last year, Tesla was allowed to sell vehicles assembled overseas without incurring import tariffs. The company was also granted exemption from having a local partner and the minimum 30 per cent Bumiputera equity requirement in Malaysia.