PM Anwar: Tesla backing off Asean expansion not because of ...

Prime Minister Datuk Seri Anwar Ibrahim speaks at the Leadership Discourse Programme Leading and Implementing MADANI Ideas at Hotel Premiera in Kuala Lumpur on August 9, 2024. — Picture by Firdaus Latif

By Soo Wern Jun

Friday, 09 Aug 2024 1:46 PM MYT

KUALA LUMPUR, Aug 9 — Tesla Inc’s decision to defer its planned expansion in the region was not a result of Malaysia’s performance or polices, said Prime Minister Datuk Seri Anwar Ibrahim.

Instead, he said it was down to fierce competition to the US electric vehicle (EV) from Chinese rivals.

Anwar also cited Investment, Trade and Industry Minister Datuk Seri Tengki Zafrul Tengku Abdul Aziz’s earlier clarification that Tesla’s decision had no material effect on Malaysia, as there were no factories planned here.

“Because they (Tesla) have suffered losses and not being able to compete with China's EVs.

“Their operation in Thailand is big, we are just about to start,” Anwar told reporters after launching the federal statutory bodies management and governance guidelines here today.

During an earnings call last month, Tesla told investors that its profits have nearly halved due to extreme competition from other EV makers.

On Wednesday, Thai news portal The Nation published a report saying that Tesla was halting plans for factories in the region including in Malaysia, Thailand, and Indonesia.

This caused confusion here as Tesla did not previously commit to such a factory, but rather to developing the firm’s supercharger network.

Today, Tengku Zafrul also noted this, and said previous agreements with Tesla were for investments here.