(Bloomberg) – Tesla Inc. is close to sealing a preliminary deal to set up a factory in Indonesia, according to people familiar with the matter, as Elon Musk’s electric vehicle pioneer looks to capitalize on the Southeast Asian nation’s reserves of fuel.
Musk is making an announcement on Thursday detailing how his electric car maker plans to develop the first stage of its electric vehicle development in the country. The electric carmaker’s initial stage of development includes a five-lane road with 3.3-mile-per-hour range, and another three-lane road and a 635-mile road with 2.1-mile-per-hour speed limits, according to a press release from the Tesla CEO.
Tesla’s electric car factory is scheduled to open later this year. The company expects to have its own production of the electric vehicle in Indonesia, where it can ship energy to India.
“The first stage [of the electric car factory] will start in Indonesia this year,” Musk says with an image of his Tesla Model S. He later reiterated the idea.