Tesla closes in on deal for Indonesian Gigafactory: Report [Update]

Tesla is reportedly close to signing a deal to build a new Gigafactory in Indonesia. This isn’t the first time reports have emerged that the Texas-based automaker is close to setting up shop in Indonesia however as there were similar rumours after CEO Elon Musk met with President Joko Widodo and other officials last year.

According to the latest report from Bloomberg, Tesla is close to signing what they refer to as a “preliminary deal” for a Gigafactory that could produce up to 1 million cars per year. The report cites anonymous sources, but Indonesian Investment Minister Bahlil Lahadalia confirmed the government is in talks with Tesla, without specifying the details of those discussions.

UPDATE 1:25pm PT: Elon Musk has essentially denied this report, saying on Twitter that stories citing unnamed sources are “frequently false.”

If the deal comes to fruition Tesla says would set up multiple facilities in the country with each one serving different functions in their production and supply chain.

The possibility of this potential deal should be taken with caution as Lahadalia also said last year that Tesla was close to signing on the dotted line for an Indonesian Gigafactory.

A vehicle Gigafactory isn’t the only deal that Tesla is reportedly working on in Indonesia. Last year we reported that Tesla had entered a five-year contract with nickel processing companies operating in the country. The deal was revealed by Indonesian authorities but have never been confirmed by Tesla.

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