A Tesla Gigafactory in South East Asia appears much less possible in present financial circumstances – no “full tilt”

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A Tesla Gigafactory in South East Asia seems less likely in current economic conditions – no “full tilt”

Malaysia, Indonesia and just lately Thailand have all set their eyes on being the situation for a Gigafactory in South East Asia. They could have to attend some time longer for that to occur, as Tesla CEO Elon Musk’s temper throughout Tesla’s Q3 2023 earnings name final night time was a mixture of warning and optimism.

He expressed warning a number of occasions and repeated references to previous experiences, just like the 2008-2009 monetary disaster. He mentions being “scarred” by previous experiences and having “PTSD from 2009,” which suggests a stage of apprehension.

As we all know, the final formally introduced new Tesla manufacturing unit location was Mexico. Elon Musk explicitly states, “we’re undoubtedly making the manufacturing unit in Mexico,” emphasizing that they really feel superb concerning the chosen location. The manufacturing unit is not only an idea; it’s a dedicated challenge.

A Tesla Gigafactory in South East Asia seems less likely in current economic conditions – no “full tilt”

Nevertheless, the timing of the manufacturing unit’s building is tied to financial circumstances, notably rates of interest. Musk mentions that if rates of interest maintain rising, it basically reduces the affordability of Tesla’s automobiles, which might impression the timing of the manufacturing unit’s building.

He means that preliminary phases of building for the Mexico manufacturing unit might begin subsequent yr however emphasizes that he doesn’t wish to go “full tilt” into financial uncertainty. As a substitute, Tesla has room for scaling manufacturing in its current amenities, notably in Texas, the place they’ve 2,000 acres of land.

Whereas discussing the Texas facility, Musk additionally touched on the problem of personnel availability. He mentions that the larger Austin space has a restricted inhabitants, which could possibly be a constraint for scaling manufacturing. Nevertheless, he notes that persons are prepared to maneuver to the realm, albeit dealing with a housing disaster.

So if Tesla is taking it gradual with the confirmed Mexico plant, it’s most unlikely that they might arrange a brand new plant anyplace else. The one cause why a brand new manufacturing unit could possibly be established on this area or some other area at that will be if Tesla has hassle with staffing factories in current places.

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