TESLA has reportedly called off plans to set up their electric vehicle (EV) manufacturing plant in the Asean region.

This follows reports made by The Nation, with a source from the Thailand government saying Tesla has abandoned its plans to set up an electric vehicle (EV) manufacturing plant in the country.

The decision follows the layoffs of a team of Tesla executives that visited Thailand in November-December, last year.

The disbanding of its executive team is said to be part of Tesla’s withdrawal of investment across Asia and beyond.

Instead the company will focus solely on expanding its' charging station infrastructure. A major shift from the initial plan as part of a $5 billion (RM22 billion) investment deal between Tesla and the Thailand government.

"Tesla is currently only discussing charging stations, with the factory plans suspended not just in Thailand but worldwide. They are not proceeding in Malaysia, Indonesia, or anywhere else except for China, America, and Germany," said the source.

Gizmochina's report reiterates that this decision aligns with Tesla’s broader global strategy which focuses on expanding its charging network to support growing EV adoption. 

The report suggests that the company will continue to ramp up production at its existing facilities while opting to focus its resources on market development and charging infrastructure rather than establishing new manufacturing hubs.

In July it was reported that Tesla's plans of its Mexico gigafactory had been put on hold until after US election. This came after US former president and current presidential candidate Donald Trump stating he would impose taxes on cars made in Mexico.

The gigafactory which was supposed to be operational by Q1 2025 has faced numerous setbacks leading up to its latest development.

“Trump has said that he will put heavy tariffs on vehicles produced in Mexico, so it doesn’t make sense to invest a lot in Mexico if that is going to be the case. So, we will kind of need to see how things play out politically,” said Tesla chief executive officer Elon Musk during the Q2 2024 earnings call.