Elon Musk Considering South Korea As The Next Location for Tesla Gigafactory – Report

President Yoon Suk-Yeol and Elon Musk discussed Tesla in a video call on Wednesday, November 23, according to South Korea's presidential office.

Elon Musk reportedly told President Yoon during the video chat that South Korea was one of the top candidates for a Tesla factory in Asia, according to Reuters. Musk has teased that Tesla will reveal its next gigafactory location by the end of 2022 since the beginning of the year.

Several documents and events surfaced last quarter that suggested Tesla would develop its next gigafactory in Canada. Francois-Philippe Champagne (FPC), Canada's Minister of Innovation, Science, and Industry, acknowledged that he had discussions with Tesla. Minister Champagne also paid a visit to Tesla's Markham, Canada, factory. The Markham facility manufactures machinery used in Tesla gigafactories around the world.

Despite the fact that the IRA would be a positive step for Tesla, the EV automaker could also be trying to establish its roots in Asia, and South Korea would be a suitable pick. Giga Shanghai has been a powerhouse plant for Tesla, contributing significantly to the company's output and profits. However, the trade war between the United States and China could put Tesla in jeopardy.

South Korea is an excellent location for a second Tesla gigafactory in Asia. Elon Musk and President Yoon also discussed Tesla boosting up supply chain collaboration with South Korea, implying that the EV maker would have a reliable support structure for a gigafactory in the country.

Tesla has already established significant ties with South Korea. It collaborates closely with LG Energy Solutions (LGES) to manufacture batteries. In June, the South Korean battery manufacturer announced intentions to invest $567.76 million in domestic production. LGES shared information on the expansion with Teslarati, including plans for a new assembly that would create 4680 cylindrical battery cells.