Tesla Cancels Factory in India, Will Switch to Indonesia?

AllvertaGlobal – SpaceX and Tesla boss Elon Musk has insisted Tesla will not build a factory in India until it gets permission to sell and provide repair services for its electric cars. This was revealed by Musk when answering a question on a Twitter account related to his old plans to expand business to the country with the second largest population in the world.
“Tesla will not build a production plant in any location where we are not permitted to first sell and repair the car,” Musk said.

Talks between Tesla and the Government of India regarding the construction of the factory are still ongoing. Previously, the Indian government had asked Musk to produce electric cars in his country in line with increasing demand.
However, India does not want Tesla to just sell to India by importing it from China, without building production facilities.
“If Elon Musk is ready to manufacture Tesla in India, then there will be no problem,” said Road Transport Minister Nitin Gadkari in April.

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From Musk’s side, negotiations are still running in place because they are hampered by import taxes and problems with local components.
The US automaker has proposed lower levies on India so it can sell cheaper imported electric vehicles (EVs) before committing to building its own manufacturing base. India will consider Tesla’s request for tax incentives only if Musk promises to buy $500 million in auto parts from local suppliers and increase domestic components by around 10-15% annually.

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On the other hand, the Indonesian government is also wooing Elon Musk so that Tesla wants to invest in Indonesia. Coordinating Minister for Maritime Affairs and Investment (Menko Marinves) Luhut Binsar Pandjaitan said Tesla’s investment plan would still take time and a long process.
This was disclosed by Luhut considering that until now there has been no official agreement reached between Indonesia and Tesla, Inc.

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“Entering investment from a company is not as easy as snapping fingers. This takes a long process and time. Moreover, this is an investment with a jumbo value. So we have to be patient, so that later it can really bring great benefits to society and the country like all of us.” hope,” said Luhut in an official statement, Tuesday (24/05/2022).
Meanwhile, Tesla was recorded back and forth in its investment plan in Indonesia. Last year, for example, it was mentioned that Tesla would develop lithium batteries in Indonesia, but it was canceled. Tesla is also reported to have withdrawn from Indonesia regarding the requirements for the supply of raw materials to build power plants.

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