Tesla eyes Indonesia for next electric vehicle plant
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Tesla (NASDAQ:TSLA) is close to finalizing a deal to locate its next Gigafactory in Indonesia, sources tell Bloomberg. The Southeast Asia site is seen as attractive due to the proximity to sources of the minerals used in electric batteries. Crucially, Indonesia is home to almost 25% of the world's nickel reserves.
The initial word is that a Indonesia Gigafactory would have the capacity to produce one million vehicles a year and that several facilities could be set up in the nation to support production and the supply chain.
Indonesian Investment Minister Bahlil Lahadalia confirmed on Wednesday that talks with Tesla are being led by the coordinating ministry for maritime affairs and investment. Indonesian officials have already visited the Austin Gigafactory. Other locations that have been mentioned as potential sites of the next Gigafactory include South Korea, Mexico, and Canada.
The latest Gigafactory twist follows news from Tuesday that the electric vehicle maker is moving forward with a huge expansion of the Austin Gigafactory.
Shares of Tesla moved up 2.35% in premarket action on Wednesday. Of note, Tesla (TSLA) is two weeks away from reporting Q4 earnings. 12 of the last 20 EPS revisions on Tesla have been to the downward side ahead of the Q4 report.