In a move that signals Turkey's ambitions to play a role in the electric vehicle (EV) sector, Turkish President Tayyip Erdogan proposed to Tesla Inc TSLA CEO Elon Musk the idea of building a Tesla production facility in the country.
Erdogan’s proposal followed Tesla's announcement in August that showed its interest in setting up a factory in India for the production of a cost-efficient EV.
Tesla currently operates six production facilities worldwide, with a seventh one under construction in Mexico's northern Nuevo Leon state.
By year-end, the EV giant intends to finalize the location for an additional factory, as stated by Musk in May.
Turkey's overture towards Tesla isn't limited to manufacturing, according to Reuters, which initially covered the topic. The country's communications directorate cited Erdogan's eagerness to collaborate with Musk on AI and Starlink as well. The Tesla CEO expressed SpaceX's intention to collaborate with Turkish authorities for the requisite licensing to provide Starlink services in the country.
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Further deepening the engagement, Erdogan extended an invitation to Musk for the Turkish aerospace and technology festival, Teknofest, scheduled for late September in Izmir. Musk reportedly accepted the invitation.
Tesla's global ambitions are vast: Benzinga reported Monday there were preliminary discussions between Tesla and Saudi Arabia for another manufacturing facility. The potential move aligned with Saudi Arabia's strategy to diminish its reliance on oil revenues.
Insiders suggested an agreement with Saudi Arabia might bolster Tesla's production capabilities while ensuring a more consistent supply of essential EV manufacturing minerals. A part of the agreement could grant Tesla the privilege to acquire specific metal quantities from nations, including the Democratic Republic of Congo.
The relationship between Musk and Turkey hasn't been devoid of complications. While Musk adhered to certain Turkish government content censoring demands on X, the platform has occasionally opposed mandates from Turkish courts, Reuters said.
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Photo: Shutterstock; Tesla production facility, courtesy Tesla Inc.
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