- Indonesian President Joko Widodo or Jokowi is confident about Tesla, Inc TSLA investing in a production facility in his country after doling out incentives ranging from tax breaks to a concession to mine nickel.
- Southeast Asia's largest economy wooed the EV giant since 2020 to tap its rich nickel ore reserves, Reuters reports.
- The president held talks with Tesla CEO Elon Musk twice, meeting him in person at his SpaceX facility in Texas last year and a telephone call.
- Jokowi promised nickel subsidies, including tax breaks and a subsidy scheme for EV purchases.
- The president was "confident" of Indonesia's edge due to its leading nickel reserves and a big domestic market.
- Tesla sought additional manufacturing hubs beyond Fremont, California; Shanghai; Austin, Texas and outside Berlin.
- Analysts estimate that Tesla would need to build seven or eight more "gigafactories" to meet Musk's target of selling 20 million electric vehicles by 2030.
- South Korea, Canada, and Mexico vied for Tesla to invest in manufacturing.
- Analysts have said Mexico could have an edge to win the Tesla investment because of its proximity to its primary market in the U.S.
- Jokowi banned the export of nickel ore in 2020 to encourage investors to build a vertically integrated supply chain for batteries and EVs.
- Indonesia saw rising interest in EV or battery production investment, with South Korea's Hyundai Motor Co, Ltd HYMTF and LG Energy Solution.
- Indonesia weighed earmarking 5 trillion rupiah ($320.41 million) from next year's budget to boost EV purchases.
- The government plans to offer subsidies to sellers to cover the costs.
- Indonesia targeted 20% of overall car sales in 2025 to be EVs.
- Price Action: TSLA shares traded higher by 1.20% at $175.15 in the premarket on the last check Wednesday.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted In:
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
