American electric vehicle giant Tesla is reportedly “in talks” with the Thai government for a potential local production plant, Reuters reports, citing an official from the prime minister’s office.
Negotiations progress
According to government official Supakorn Congsomjit’s remarks on Monday, Tesla and the Thai government are currently exploring the potential development of a domestic production plant after conducting a site survey in late 2023.
Thailand government officials are reportedly trying to attract Tesla with a 100% green energy offer to support the factory’s operation.
It is also worth noting that the factory could produce either electric vehicles or power batteries.
Thailand continues to court Tesla to invest in its electric vehicle industry, following the several meetings they had in late 2023.
The Musk-led company welcomed Prime Minister Srettha Thavisin at the Fremont Factory in California. Chief Elon Musk also met with the Prime Minister in New York in September 2023.
The two parties have been discussing a potential partnership for several years, and it appears that negotiations are now progressing.
Why Thailand?
Tesla’s potential investment in a Thai production plant will not be surprising, given that the country is currently Southeast Asia’s largest car producer and exporter. In addition, the country boasts a strong automotive manufacturing industry.
The Thai government further seeks to advance as the region’s main electric vehicle production center. So far, it has already secured more than $1.44 billion in investment commitments from Chinese electric automakers.
Nonetheless, it still seeks to bring Tesla over, highlighting its commitment to boost its electric vehicle industry.
With recent reports of potential new locations, including India and Italy, it would be interesting to see which country will ultimately win Tesla’s investment.
