Tesla Reconsiders Thailand Plant Amidst Global Strategy Shift

[webfact]

A Tesla charger is seen, Oct. 19, 2022, in Freeport, Maine. (AP Photo/Robert F. Bukaty, File)

 

Tesla's proposed investment in Thailand is under scrutiny as the electric vehicle giant reassesses its global strategy in the face of declining sales growth and heightened competition from Chinese EV makers. Government spokesman Chai Wacharonke confirmed on Tuesday that Thailand is awaiting official word from Tesla regarding the potential scrapping of their investment plans.

 

"Tesla is reviewing its investment plans worldwide, not just in Thailand," said Mr Chai. "However, there has been no confirmation [about halting the investment plan in Thailand] from the company. It’s been reported in the news. We’re waiting to hear from them."

 

Recent media reports suggest that Tesla is prioritising its existing production bases in the US, China, and Germany. This strategy aligns with the company's April announcement to focus on building new, more affordable vehicles at its current factories rather than investing in new sites in Mexico and India.

 

Indonesia, another hopeful for Tesla's investment, is still waiting for updates on a planned EV battery manufacturing plant. The two parties signed a $5 billion agreement in 2022, under which Tesla would source significant amounts of nickel for its EV batteries, reported Bangkok Post.

 

Prime Minister Srettha Thavisin initially disclosed Tesla's interest in Thailand after meeting with CEO Elon Musk at the UN General Assembly in New York last September. Following this, Mr Srettha toured Tesla's Fremont factory in California in November, reportedly persuading the company to consider Thailand for investment.

 

Tesla’s deputy chief of investment was later invited to visit an industrial estate in Thailand's Eastern Economic Corridor and attend Loy Krathong celebrations in Chiang Mai.

 

However, the South China Morning Post reported last Friday that Tesla’s interest in investing in Thailand and Malaysia seems to have waned. In Thailand, the focus now appears to be on EV charging stations rather than a full-scale production plant.

 

Following a cabinet meeting on Tuesday, Prime Minister Srettha stated he had no new information on Tesla's possible withdrawal but noted ongoing discussions between the government and the company about a potential business plan.

 

 

-- 2024-08-14

 

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[JoePai]

Dear Khun Chai Wacharonke 

 

Forget it - Tesla will not build in Thailand

[retarius]

Maybe there will be a huge surge in sales as Thailand becomes the hub of EV cars, and Tesla will be begging to be allowed to invest in Thailand. 

[hotchilli]

4 hours ago, webfact said:

Recent media reports suggest that Tesla is prioritising its existing production bases in the US, China, and Germany. This strategy aligns with the company's April announcement to focus on building new, more affordable vehicles at its current factories rather than investing in new sites in Mexico and India.

I guess the China company builds enough for the Asian market.. No need to over saturate.

[nakhonandy]

24 minutes ago, hotchilli said:

I guess the China company builds enough for the Asian market.. No need to over saturate.

Plus Tesla has to compete with the heavily state subsidised Chinese manufacturers. 

Why expand now?

[Selatan]

1 hour ago, nakhonandy said:

Plus Tesla has to compete with the heavily state subsidised Chinese manufacturers. 

Why expand now?

Tesla and other foreign automakers also received subsidies from China. It depends on how many EVs that they have sold. Because BYD sold more EVs than Tesla, it received more subsidies.

 

EU Concerns About Chinese Subsidies: What the Evidence Suggests

 

Quote

By far the largest recipient of purchase subsidies was Chinese NEV manufacturer BYD, which in 2022 alone received purchase subsidies amounting to €1.6 billion (for about 1.4 million NEV) (Figure 4). The second largest recipient of purchase subsidies was US-headquartered Tesla, which received about €0.4 billion (for about 250,000 BEV produced in its Shanghai Gigafactory). While the ten next highest recipients of purchase subsidies are all Chinese, there are also three Sino-foreign joint ventures (the two VW joint ventures with FAW and SAIC as well as SAIC GM Wuling) among the top 20 purchase subsidy recipients.

 

[khunpeer]

6 hours ago, webfact said:

A Tesla charger is seen, Oct. 19, 2022, in Freeport, Maine. (AP Photo/Robert F. Bukaty, File)

 

Tesla's proposed investment in Thailand is under scrutiny as the electric vehicle giant reassesses its global strategy in the face of declining sales growth and heightened competition from Chinese EV makers. Government spokesman Chai Wacharonke confirmed on Tuesday that Thailand is awaiting official word from Tesla regarding the potential scrapping of their investment plans.

 

"Tesla is reviewing its investment plans worldwide, not just in Thailand," said Mr Chai. "However, there has been no confirmation [about halting the investment plan in Thailand] from the company. It’s been reported in the news. We’re waiting to hear from them."

 

Recent media reports suggest that Tesla is prioritising its existing production bases in the US, China, and Germany. This strategy aligns with the company's April announcement to focus on building new, more affordable vehicles at its current factories rather than investing in new sites in Mexico and India.

 

Indonesia, another hopeful for Tesla's investment, is still waiting for updates on a planned EV battery manufacturing plant. The two parties signed a $5 billion agreement in 2022, under which Tesla would source significant amounts of nickel for its EV batteries, reported Bangkok Post.

 

Prime Minister Srettha Thavisin initially disclosed Tesla's interest in Thailand after meeting with CEO Elon Musk at the UN General Assembly in New York last September. Following this, Mr Srettha toured Tesla's Fremont factory in California in November, reportedly persuading the company to consider Thailand for investment.

 

Tesla’s deputy chief of investment was later invited to visit an industrial estate in Thailand's Eastern Economic Corridor and attend Loy Krathong celebrations in Chiang Mai.

 

However, the South China Morning Post reported last Friday that Tesla’s interest in investing in Thailand and Malaysia seems to have waned. In Thailand, the focus now appears to be on EV charging stations rather than a full-scale production plant.

 

Following a cabinet meeting on Tuesday, Prime Minister Srettha stated he had no new information on Tesla's possible withdrawal but noted ongoing discussions between the government and the company about a potential business plan.

 

 

-- 2024-08-14

 

- Cigna offers a variety of health insurance plans designed to meet the minimum requirement for medical treatment coverage, with benefits reaching up to THB 3 million. These plans are tailored to provide comprehensive healthcare solutions for expatriates, ensuring peace of mind and access to quality medical services. To explore the full range of Cigna's expat health insurance options and find a plan that suits your needs, click here for more information.

 

Get our Daily Newsletter - Click HERE to subscribe

 

wasn't it that latest salesfigures show strong decline in US after Elon chose to be Trumps sponsor?

so why build more car-factories when sales drop...

I guess at Tesla they don't do long term visions or so. every week new announcements about what's going to change...

and some changes are not for the better...

[Photoguy21]

6 hours ago, retarius said:

Maybe there will be a huge surge in sales as Thailand becomes the hub of EV cars, and Tesla will be begging to be allowed to invest in Thailand. 

Whatever you are on I would stop taking it. I know though you are joking.

[nobodysfriend]

8 hours ago, retarius said:

Maybe there will be a huge surge in sales as Thailand becomes the hub of EV cars, and Tesla will be begging to be allowed to invest in Thailand. 

 

Ev's are good for the city only .

Lithium batteries create problems as well by the way they are manufactured and the way they can be re-used or disposed of .

Not very sustainable ... try to drive an EV in a cold country with aircon on ... the batteries will become exhausted soon ...

 

The only way to go is hydrogen that can be refilled at Petrol stations .

[hotchilli]

3 hours ago, nakhonandy said:

Plus Tesla has to compete with the heavily state subsidised Chinese manufacturers. 

Why expand now?

Tesla has a niche market with his product, he's not competing in the same market as the more affordable Chinese brands.

[KhunLA]

1 hour ago, nobodysfriend said:

... try to drive an EV in a cold country with aircon on ... the batteries will become exhausted soon ...

[Deez]

Pro China Thailand does not want Tesla. Quantity over quality