KUALA LUMPUR: Tesla has never committed to establishing a factory in Malaysia, according to Minister of Investment, Trade, and Industry, Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

In a post on X, formerly known as Twitter, Tengku Zafrul clarified that the Ministry of Investment, Trade, and Industry (MITI) had engaged in discussions with Tesla founder Elon Musk to attract investment. However, these discussions did not include any plans for setting up a factory.

"Firstly, the foreign news report is not an official statement from Tesla but rather cites anonymous or unnamed sources. Reporters should verify the authenticity of this news with Tesla, as the source of this information is not directly 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 stated.

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

The report further mentioned that Tesla's current discussions are focused solely on efforts related to charging stations and that plans to develop factories have been suspended not only 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.

In March of last year, Tesla announced its plans to establish a headquarters in Malaysia, introduce a Tesla Experience Centre and Service Centre, and build a super-fast charging network in the country.

This followed MITI's approval of Tesla's application to import battery electric vehicles (BEVs) into Malaysia.

Meanwhile, Tengku Zafrul emphasized that in efforts to strengthen the electric vehicle (EV) ecosystem, the government has launched 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% of these chargers in Malaysia are available for public use, including for brands other than the company's own.

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 working with suppliers of equipment such as transformers and cables, among other components.

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

"Through similar programs, countries like China, Hong Kong, and Norway have accelerated the transition to EVs. As this happens, many local small and medium-sized enterprises (SMEs) benefit from participating in the EV ecosystem.

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

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

"From 2022 to the first quarter of 2024, we have secured 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 added.