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Malaysia, Indonesia and not too long ago Thailand have all set their eyes on being the placement for a Gigafactory in South East Asia. They may 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 evening was a mixture of warning and optimism.

He expressed warning a number of instances 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 facility location was Mexico. Elon Musk explicitly states, “we’re undoubtedly making the manufacturing facility in Mexico,” emphasizing that they really feel superb in regards to the chosen location. The manufacturing facility is not only an idea; it’s a dedicated mission.

Nevertheless, the timing of the manufacturing facility’s development is tied to financial situations, significantly rates of interest. Musk mentions that if rates of interest preserve rising, it essentially reduces the affordability of Tesla’s autos, which may affect the timing of the manufacturing facility’s development.

He means that preliminary phases of development for the Mexico manufacturing facility may begin subsequent yr however emphasizes that he doesn’t need to go “full tilt” into financial uncertainty. As a substitute, Tesla has room for scaling manufacturing in its current amenities, significantly 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 better 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 impossible that they might arrange a brand new plant wherever else. The one cause why a brand new manufacturing facility could possibly be established on this area or every other area at that may be if Tesla has bother with staffing factories in current areas.

The submit A Tesla Gigafactory in South East Asia appears much less probably in present financial situations – no “full tilt” appeared first on Paul Tan's Automotive Information.

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