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Tesla Closes In on Preliminary Deal for Indonesia EV Plant

  • Factory would produce as many as 1 million cars a year
  • CEO Musk met with President Widodo last year in Texas
Bloomberg business news
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Tesla Inc. is close to a preliminary deal to set up a factory in Indonesia, according to people familiar with the matter, as Elon Musk’s electric-vehicle maker looks to capitalize on the Southeast Asian nation’s reserves of key battery metals.

The plant would produce as many as 1 million cars a year, the people said, in line with Tesla’s ambition for all its factories globally to eventually reach that capacity. The discussions include plans for multiple facilities in the country serving different functions, including production and supply chain, one of the people said. A deal hasn’t been signed and the agreement could still fall through, said the people, asking not to be identified as the talks are confidential.