Tesla’s long-term plans include expanding production beyond its headquarters in the United States to several other countries. Among these planned expansions is developing another Gigafactory in Asia, a country already poised to become one of the automaker’s key suppliers, as per Evannex.
Bloomberg also reported that Tesla is nearing a deal to construct a plant in Indonesia, citing sources close to the matter.
Tesla has been negotiating with the country for months, specifically about the Southeast Asian nation’s abundant supply of nickel — a critical mineral for building electric vehicle batteries.
Tesla to build numerous plant
Tesla’s strategies include numerous facilities in the country to meet supply chain and production requirements, per a trusted source.
Furthermore, the sources stated that no contract had yet been signed, implying that the agreement could still slip through.
The sources requested anonymity because the conversations are not yet public. In response, Musk later tweeted in a thread, warning people not to immediately trust unnamed sources.
“Please be careful about writing articles citing ‘unnamed sources,’ as they are frequently false.”
Tesla CEO Elon Musk
President Widodo will invest more time in Tesla
Indonesian President Joko Widodo visited the United States in May, resulting in a $5 billion nickel supply deal a few months later.
President Widodo stated in an interview that he would prefer Tesla to build EVs in Indonesia rather than develop batteries or receive nickel supplies. Furthermore, President Widodo said he would invest more time in persuading Musk and Tesla to see Indonesia as more than a resource supplier.
Expanding EV industry
Musk’s statements at last year’s shareholder meeting imply that Tesla finally intends to open 10 to 12 Gigafactories in markets all over the world. Tesla currently operates only two factories outside the United States: the Gigafactory Shanghai and the Gigafactory Berlin-Brandenburg, which opened last year.
According to multiple local media outlets, Tesla intends to construct an EV factory in Mexico’s Nuevo León. Some have suggested that Canada is a likely location for a Tesla Gigafactory. The announcement also comes as many critics of the carmaker point to recent price cuts in China as an attempt to boost demand.
In any case, Tesla’s production increases are notable, even though some believe increased competition for EVs may threaten the automaker’s dominant position in the Ev industry.
