Anwar: Tesla Is Struggling Globally Against Rapid Rise Of Chinese EVs

Earlier today, Prime Minister Datuk Seri Anwar Ibrahim confirmed that Tesla, the American electric vehicle (EV) pioneer, is struggling to compete against the rapid rise of Chinese EV manufacturers.

He made this statement in response to social media backlash directed at his administration, led by Investment, Trade, and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz, following a report from Thailand’s The Nation. The report announced that Tesla had scrapped plans to establish factories across Southeast Asia.

Anwar clarified that Tesla's decision to defer its planned expansion in the region was not a reflection of Malaysia's performance or policies. Instead, it was driven primarily by the intense competition from Chinese EV makers.

He further explained that Tengku Zafrul had already made it clear that Tesla’s decision would not significantly impact Malaysia, as there had never been confirmed plans for factories in the country — just the setup of its Supercharger network.

Anwar also emphasised that all information shared by his administration comes directly from Tesla and not from any media sources, whether foreign or local. "Tesla has faced losses and struggles to compete with China's EVs," Anwar stated, noting that Tesla's operations in Thailand are substantial, whereas Malaysia's involvement with Tesla is still in its early stages.

Tesla, which entered the Malaysian market early last year under the Battery Electric Vehicle Global Leaders Initiative (BEV GLI), has been a point of pride for Anwar’s administration. The company was able to establish a presence without the involvement of local partners, and it received special arrangements for vehicle importation.

However, nearly two years later, the results have been modest — one headquarters and service centre in Cyberjaya, a few mall-oriented pop-up retail showcase outlets, and 11 Supercharging stations with 52 Superchargers.

Meanwhile, for the approximately 40 other vehicle brands operating in the country for decades that have actively contributed to economic growth, employment, TVET (Technical and Vocational Education and Training), parts localisation, and CKD (Completely Knocked Down) efforts over decades, not much aid or exemptions seem to have been extended.

This lack of support is indirectly hurting the industry, as these brands struggle to match Tesla's pricing strategy. You can read more about this HERE.