Thailand’s government is engaging in discussions with electric vehicle (EV) giant Tesla (TSLA) regarding the possibility of establishing a production facility in the country, as confirmed by an official from the prime minister’s office on Monday. The talks come following a site survey conducted by Tesla late last year.
The government has reportedly offered Tesla guaranteed access to renewable energy to power the facility, which would focus on producing electric vehicles or batteries. This potential move marks a significant step for Tesla, which only recently began operating officially in Thailand, opening orders in late 2022 and commencing deliveries last year.
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Thailand, known for being a major car market in Asia, also boasts one of the largest vehicle assembly hubs on the continent, producing up to 2 million vehicles locally each year. This strategic location could offer Tesla access to a well-established automotive ecosystem.
Although discussions about Tesla setting up a manufacturing facility in Thailand have circulated in the past, it appears that progress is being made, as indicated by the ongoing efforts of the local government. Reports suggest that Tesla is seeking “2,000 rai (320 hectares) of land” in Thailand as a potential location for the factory.
Tesla is reportedly aiming to announce the location of its new factory by the end of the year. Speculation abounds regarding the potential site, with Italy also recently expressing interest in hosting a Tesla factory. Thailand’s renewed involvement underscores the country’s determination to attract high-profile players in the EV industry.
