Tesla Gets Indonesia Invite To Set Up Massive EV Factory: Report

Tesla Gets Indonesia Invite To Set Up Massive EV Factory: Report

Tesla, Inc. TSLA has reportedly received an invite from Indonesia to add to its list of growing factories across the world.

What Happened: Indonesia has asked Tesla to set up an electric vehicle manufacturing plant near Batang Regence in the Central Java province, Teslarati reported, citing Luhut Pandjaitan, Indonesia's Coordinating Maritime Affairs and Investment Minister.

The proposed plant will likely have an annual production capacity of 500,000 cars, possibly powered by renewable sources, the report said.

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A state-owned corporation named PT Geo Dipa Energi runs geothermal plants in Batang Regency, the report said. The minister reportedly told lawmakers how Tesla could use the company's output to power its plant. Tesla has also shown interest in North Kalimantan Green Industrial Park, which relies on hydro and solar power, he added.

Why It Matters: Luhut reportedly suggested that Indonesia wants to be a producer of Tesla vehicles and not merely a distributor.

In mid-May, Tesla chief executive officer Elon Musk met with Indonesian Prime Minister Joko Widodo at the SpaceX rocket production site in Boca Chica, Texas. Widodo reportedly invited Musk to visit his country, and Musk replied that he hopes to come over in November.

The southeast Asian country is known for its mineral resources, which could come in handy for Tesla for manufacturing batteries.

Price Action: Tesla shares ended Friday's session down 3.12% at $696.69, according to  Benzinga Pro data.

 

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