Tesla closing in on deal for factory in Indonesia
Tesla is on the verge of inking a preliminary deal for a plant in Indonesia, with Chief Executive Elon Musk hoping to harness the South East Asian nation’s metal deposits for batteries, anonymous sources familiar with the matter tell news agency Bloomberg.
The plan is to manufacture approximately 1 million vehicles annually at the facility. The sources say that this is Tesla’s ambition for all of factories across the globe, reports Bloomberg.
The talks include plans for multiple facilities in the nation, all of which will handle various parts of the production and supply chain. No deal has been inked as yet, and the sources say that the plans might still be scrapped altogether.
Indonesian Minister of Investment Bahlil Lahadalia has said to Bloomberg that talks with Tesla are led by the coordinating ministry for maritime affairs and investments.
Last year, the automaker signed a USD 5bn deal concerning nickel supply in Indonesia. In previous interview, the nation’s president, Joko WIdodo, said that he wants Tesla to manufacture not just batteries, but vehicles as well.
Tesla’s share price increases by 2.2% to USD 121.4 in US pre-market trading.
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