KUALA LUMPUR, Aug 9 — Tesla has never committed to opening a factory in Malaysia, said Minister of Investment, Trade, and Industry Datuk Seri Tengku Zafrul Abdul Aziz.

In a post on X, formerly known as Twitter, Tengku Zafrul explained that the Ministry of Investment, Trade and Industry (Miti) had engaged in discussions with Tesla founder Elon Musk in efforts to attract investment, but these discussions did not involve setting up a factory.

“Firstly, the foreign news report is not an official statement from Tesla but rather quotes anonymous or unnamed sources. Reporters need to verify the authenticity of this news with Tesla, as the source of this news is not from Tesla.

“Secondly, Miti has never announced that Tesla will open a factory in Malaysia. We have had discussions with Elon Musk in efforts to attract investment, but Tesla has never committed to opening a factory here,” Tengku Zafrul said.

He made these comments in response to a report from Thai online news portal, The Nation, which cited unnamed sources within the government regarding Tesla’s cancellation of plans to develop factories in Malaysia, Thailand, and Indonesia.

The report also stated that Tesla’s current discussions are only focused on efforts related to charging stations and has suspended plans to develop factories not just in Thailand but globally.

“Tesla is not proceeding with plans in Malaysia, Indonesia, or other locations except in China, the United States, and Germany,” the news portal reported.

On July 20 last year, a leading United States multinational electric automotive manufacturer announced its strategic expansion into the Malaysian market through Tesla Malaysia Sdn Bhd.

According to a joint statement from Tesla and the Malaysian Investment Development Authority (Mida), this move is a direct response to the Battery Electric Vehicle (BEV) Global Leader initiative introduced by Miti.

In addition to introducing a range of advanced electric vehicles (EVs) to Malaysian consumers, Tesla is also committed to investing in a comprehensive network of fast and standard charging stations across strategic locations in Malaysia, as well as establishing its state-of-the-art headquarters and service centre in Cyberjaya, Selangor.

Meanwhile, Tengku Zafrul stated that in efforts to strengthen the electric vehicle (EV) ecosystem, the government has introduced the Battery Electric Vehicle Global Leaders initiative, which is open to EV manufacturers.

Among the requirements are the installation of at least 50 ultra-fast chargers with capacities exceeding 180 kWh and ensuring that at least 30 per cent of these ultra-fast chargers in Malaysia are open for public use, i.e., for brands other than the company’s brand.

Additionally, interested EV manufacturers must collaborate with at least 10 local companies to develop the EV charging industry ecosystem, including employing local contractors for EV charging installation and suppliers of equipment such as transformers and cables, among others.

Tengku Zafrul added that the purpose of the initiative is to enhance the charging network for local EV owners and increase local company participation in the EV charging ecosystem.

“Through similar programmes, countries such as China, Hong Kong, and Norway have accelerated the shift to EVs. As this happens, many local small and medium-sized enterprises (SMEs) would benefit from participating in the EV ecosystem.

“So far, only Tesla has applied and been approved for participation in this Global BEV Initiative, but we welcome other EV manufacturers to join. So, when it is said that Tesla receives special treatment, that is not accurate; any company can apply for this initiative,” he said.

In this context, the minister said Miti will continue to work on attracting high-quality investment into Malaysia, including continuing strategies to attract investment in the automotive industry beyond just Tesla.

“From 2022 to the first quarter of 2024, we have attracted RM24.55 billion in investment for EV-related manufacturing activities from companies such as Chery, Gemilang Coachwork, Samsung SDI Energy, NexV Manufacturing, and EVE Energy.

“Our local manufacturers also support Tesla’s global supply chain by providing spare parts, components, and factory automation systems,” Tengku Zafrul said. — Bernama