The local parts are mainly used for the provision of semiconductor components, machinery inspection, and factory automation systems, it said.

“Although Tesla has never given any commitment to undertake local assembly for its vehicles, Miti is always discussing the potential of Tesla using the local supply chain for its manufacturing components,” it said in a written parliamentary reply.

It was responding to a query from Awang Hashim (PN-Pendang) on reports that Tesla had scrapped plans to build factories in Asean countries, including Malaysia.

The ministry said Tesla’s presence in the Malaysian market demonstrated its confidence in the local EV market and the government’s policies promoting EVs.

It said Putrajaya will continue striving to attract foreign and local investors in the automotive and related sectors to carry out operations in the country.

Tesla’s entry into Malaysia in 2023 was through the BEV Global Leaders AP programme, established specifically to woo top battery electric vehicle producers to set up shop and invest in Malaysia.

Several conditions were imposed on Tesla to take part in the programme, including a commitment to install at least 50 ultra-fast chargers, ensure at least 30% of these chargers were open for public use for EV brands other than Tesla, and cooperate with at least 10 local firms to develop the EV charging technology here.