Tesla seems to be slowing down on global expansion

Tesla may not begin production at its major new factory planned for Mexico before 2026 and 2027, according to local media reports. Plans also appear delayed, if not on hold, in Indonesia amidst an oversupply in the EV industry and economic downturns.

In Mexico, the local daily publication Reforma cited an anonymous supplier saying that they and several other Chinese companies may delay plans to launch operations near the still un-built Tesla factory.

“Two or three months ago, there was a lot of rush, lots of pressure to look for a location. But one month later, they told us to wait,” the source told Reforma.

Earlier reports indeed suggested Tesla would build Giga Mexico in the northern state of Nuevo Leon and planned to begin production in Mexico in 2025. At the time, the media reported that Tesla had given this date to several Chinese suppliers.

The company announced its plans for Mexico in March without officially revealing a start date for construction or production. At that time, there was talk of investments of five billion dollars and, a little later, a production capacity of one million electric cars per year.

Reports in August said Tesla had already applied for the first environmental permits for the plant.

Tesla has yet to comment on today’s report.

Meanwhile, Bloomberg has also received news on Tesla’s plans in Indonesia, which appear to be on hold for the foreseeable future. The agency cites Luhut Pandjaitan, Indonesia’s Minister for Investment, who met Elon Musk in August. According to the report, Tesla is not planning a car factory in Indonesia nor a battery material factory rumoured last month as well. According to Panjaitan, Musk is concerned about the global economic outlook and the oversupply in the e-car industry.

“I said fine, we are doing okay if you cannot invest in Indonesia for a moment, no problem,” Panjaitan said about his meeting with Musk when they talked for more than two hours.

Indonesia has seen a slew of e-mobility investments from CATL over Hyundai Mobis to Volkswagen, to name a few. The country aims to host an end-to-end supply chain for the electric vehicle industry.

Musk is set to return to Indonesia in October for talks between the government and his satellite internet service Starlink, Panjaitan said.

reforma.com (in Spanish) via reuters.com, bnnbloomberg.ca (Indonesia)