Indonesia President Confident Of Winning Tesla EV Plant Investment Courtesy Of Battery Reserves And Subsidies

  • Indonesian President Joko Widodo or Jokowi is confident about Tesla, Inc TSLA investing in a production facility in his country after doling out incentives ranging from tax breaks to a concession to mine nickel.
  • Southeast Asia's largest economy wooed the EV giant since 2020 to tap its rich nickel ore reserves, Reuters reports.
  • The president held talks with Tesla CEO Elon Musk twice, meeting him in person at his SpaceX facility in Texas last year and a telephone call.
  • Jokowi promised nickel subsidies, including tax breaks and a subsidy scheme for EV purchases.
  • The president was "confident" of Indonesia's edge due to its leading nickel reserves and a big domestic market.
  • Tesla sought additional manufacturing hubs beyond Fremont, California; Shanghai; Austin, Texas and outside Berlin.
  • Analysts estimate that Tesla would need to build seven or eight more "gigafactories" to meet Musk's target of selling 20 million electric vehicles by 2030.
  • South Korea, Canada, and Mexico vied for Tesla to invest in manufacturing.
  • Analysts have said Mexico could have an edge to win the Tesla investment because of its proximity to its primary market in the U.S.
  • Jokowi banned the export of nickel ore in 2020 to encourage investors to build a vertically integrated supply chain for batteries and EVs.
  • Indonesia saw rising interest in EV or battery production investment, with South Korea's Hyundai Motor Co, Ltd HYMTF and LG Energy Solution.
  • Indonesia weighed earmarking 5 trillion rupiah ($320.41 million) from next year's budget to boost EV purchases.
  • The government plans to offer subsidies to sellers to cover the costs.
  • Indonesia targeted 20% of overall car sales in 2025 to be EVs.
  • Price Action: TSLA shares traded higher by 1.20% at $175.15 in the premarket on the last check Wednesday.
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