Electric vehicle manufacturer Tesla has scrapped plans to establish manufacturing plants in Southeast Asia, including Malaysia.

According to a report by Thai newspaper The Nation, a source from the Thai government said that Tesla is currently only focusing on charging stations, with factory plans suspended globally.

“They are not proceeding in Malaysia, Indonesia, or anywhere else except for China, America, and Germany,“ the source said.

This decision comes as part of Tesla’s broader withdrawal of investments across Asia and beyond which the company has reportedly disbanded the executive team that was leading its Southeast Asian expansion efforts last year.

The report also mentioned that Tesla has halted plans for a gigafactory in Mexico, citing economic concerns and potential political impacts from the upcoming US presidential election.

In July 2023, Prime Minister Datuk Seri Anwar Ibrahim stated that Tesla would set up its Malaysian headquarters, as well as service centres, in Selangor.

He also mentioned that the company’s investments would create “tens of thousands of high-value jobs” in the country.

Selangor Menteri Besar Amirudin Shari also previously indicated that the districts of Petaling and Sepang were prepared to facilitate Tesla’s investment entry process.

He had expressed hope that the company’s presence would attract more international battery technology companies to invest in the state.