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Tesla (NASDAQ:TSLA) is reportedly in talks with Thailand’s government for a potential production facility in the nation. The electric vehicle maker conducted a site survey late last year as part of the exploratory process, according to an official from the prime minister’s office.
Thailand is the largest car producer and exporter in Southeast Asia and has a target to become the main EV production hub in the region. In an effort to support that goal, the Thai government has offered Tesla 100% green energy to run a facility that could produce EVs or batteries.
Thailand has already attracted over $1.44B in investment commitments from Chinese electric vehicle makers. BYD Company (OTCPK:BYDDF) has already built a dealer netork in Thailand and is the third-largest seller in the overall Thailand auto industry by market share. The Thai auto market is expected to expand 3% this year after seeing negative growth in 2023.
Shares of Tesla (TSLA) fell 1.47% in premarket trading on Monday. The EV stock is down about 19% on a year-to-date basis and trades well below its 200-day moving average. The Seeking Alpha Quant Rating on Tesla (TSLA) is at Hold, with a high grade for profitability and growth offset by low marks for valuation and earnings revisions.
