The Ministry of Investment, Trade and Industry (MITI) has announced that Tesla has sourced components from around 45 Malaysian suppliers, both directly and indirectly.

This collaboration also includes technology transfer to these suppliers, as reported by local news outlets.

MITI further explained that these local suppliers are mainly responsible for providing semiconductor components, machinery inspection, and factory automation systems.

"Although Tesla has never made any commitment to undertake local assembly for its vehicles, MITI, through its agency, the Malaysian Investment Development Authority (MIDA), is continuously engaging in discussions regarding the potential for Tesla to utilise the local supply chain for its manufacturing components," the ministry stated in a written response on the parliamentary website on 21st November.

MITI was addressing a question from Pendang member of the parliament Datuk Awang Hashim regarding the government's stance and strategy, following reports that Tesla had cancelled plans to build factories in ASEAN countries, including Malaysia.

The ministry further added that Tesla's presence in Malaysia reflects the carmaker's confidence in the local electric vehicle (EV) market and the government's EV policies. The government will continue to focus on attracting both foreign and local investors to the automotive and related sectors in the country.

"This approach will help strengthen the capabilities of the local supply chain and encourage the localisation of automotive component manufacturing," MITI said.

Tesla's entry into Malaysia in 2023 was facilitated through the BEV Global Leaders AP programme, which was specifically created to attract top battery electric vehicle (BEV) producers to establish operations and invest in Malaysia.

Several conditions were imposed on Tesla as part of the programme, including the installation of at least 50 chargers with a capacity of over 180 kW, ensuring that at least 30% of these ultra-fast chargers are accessible to non-Tesla vehicles, and collaborating with at least 10 local companies to develop EV charging technology in the country.

Tesla recently advertised a job opening for a Battery Cell Supplier Industrialisation Engineer in Perai, Penang. This position is likely the company's first supply chain-related role in Malaysia, as previous job postings have predominantly focused on sales, services, or IT.