Tesla Expands in Thailand: New Interest Rate Program and Land Acquisition Talks

Tesla announces special financing in Thailand and negotiates for land to potentially build a new Gigafactory.

Tuesday, April 23, 2024 4:11 AM UTC

Tesla Introduces Competitive Financing Options in Thailand Amid Plans for New Gigafactory

Tesla Thailand has introduced a unique interest rate scheme for Model 3 and Model Y buyers. Tesla's special interest rate scheme in Thailand begins at 2.49%, per Teslarati.

“The limited program only you start today. An important opportunity to get a special interest rate starting at just 2.49% with 1st class insurance and a 4-year Tesla car maintenance package. We reserve the right for customers who order and pick up the vehicle by June 28, 2024,” announced Tesla Thailand.

Tesla anticipates growing opportunities in Thailand and other Southeast Asian countries. Rohan Patel, a former Tesla Vice President of Public Policy and Business Development, stated that Southeast Asia is a major place of growth for battery storage and electric vehicle adoption.

In recent years, there have been numerous speculations that Tesla is considering prospective corporate ventures in a few Southeast Asian countries, including Malaysia and Singapore. Thailand is no exception.

Tesla planned to invest in a 790-acre plot of land in Thailand in December 2023. At the time, the Thai government launched initiatives to make electric vehicles more appealing to local buyers. The programs enabled Thailand to account for half Southeast Asia's EV sales.

As recently as last month, Tesla reportedly talked with the Thai government about establishing a Gigafactory nationwide. The EV automaker has been in talks with the Thai government for several years about establishing a Gigafactory there. However, the Thai Prime Minister's office has signaled that the conversations are becoming more serious.

Thai Prime Minister Leads Tesla Execs in Search for New Gigafactory Site to Boost EV Leadership

Thai Prime Minister Srettha Thavisin personally joined Tesla officials on a tour of potential industrial locations this week, seemingly to emphasize Thailand's potential as a Southeast Asian electric vehicle manufacturing powerhouse.

“I went out of my way to entertain them so they would fall in love with Thailand,” Thavisin said. The Prime Minister also noted that the Tesla executives were looking for a sizable piece of land in Thailand. “They are looking for 2,000 rai (790 acres) of land.”

This strategic approach comes only months after Srettha took office in August. A month later, he had an important meeting with Tesla CEO Elon Musk. Thavisin visited Tesla's Fremont factory in mid-November, where he posed for a selfie with Tesla VP Vehicle Engineering Lars Moravy on top of a Cybertruck.

At the end of November, the Prime Minister announced that Tesla executives would be visiting Thailand to explore potential plant sites. He also mentioned that the electric vehicle manufacturer could invest around $5 billion in Thailand.

Thailand's automotive sector is already one of the largest in Southeast Asia, including Japanese heavyweights such as Toyota, Isuzu, and Honda. Still, the Thai government appears intent on shifting to electric vehicles. Thailand produces 2.5 million vehicles per year, and the country hopes to convert roughly one-third of them to EVs by the end of the decade, according to a Reuters article.

Thailand is making efforts to make EVs more appealing to consumers. Government subsidies amount to 150,000 baht (about $4,200) per vehicle. These programs enabled Thailand to account for over half of Southeast Asia's EV sales in the second quarter.

Thailand's tax advantages and subsidies have already enticed Chinese automakers BYD and Great Wall Motors to invest $1.44 billion in new production facilities in Thailand. Given Tesla's position as the vanguard of the EV sector, one cannot deny that a Gigafactory in Thailand might be a crown gem for the country's automotive sector.

Photo: Maxim /Unsplash