By Michael Elkins
An exclusive report by Bloomberg stated that electronic vehicle giant, Tesla (NASDAQ:TSLA) is close to sealing a preliminary deal to set up a factory in Indonesia.
According to people familiar with the matter, the plant would produce as many as 1 million cars a year, in line with Tesla’s ambition to have all its factories globally reach that capacity.
Indonesian Investment Minister Bahlil Lahadalia said talks with Tesla are being led by the coordinating ministry for maritime affairs and investment when asked about the potential deal on Wednesday. A representative for the ministry didn’t immediately respond to requests for comment.
In an interview in August with Bloomberg News, President Joko Widodo said the country wants Tesla to make electric cars there, not just batteries, and is willing to take the time to convince Musk to see Indonesia as more than just a supplier of key resources.
Shares of TSLA are up 2.30% in pre-market trading on Wednesday.