Tesla's development into Southeast Asia is a top priority, according to a senior official, underlining the fast-growing sector in which the American electric vehicle manufacturer competes with China's BYD. The area has emerged as one of the hottest EV markets in recent years, potentially providing Tesla with a significant customer base at a time when demand in the United States is declining.

In a post on X, Rohan Patel, senior public policy and business development executive at Tesla, stated that Southeast Asia would likely be a key growth region for battery storage and electric car adoption in the next years. Patel was reacting to a user post announcing the first Model Y deliveries in Malaysia. The business also offers its tiny car, the Model 3, in the nation.

Last year, the Malaysian government granted Tesla a license to sell its vehicles in the nation, stating that the company will also construct a network of charging stations. Tesla is also in negotiations to expand its business in other countries, including Thailand, Southeast Asia's largest vehicle manufacturer and exporter.

A Thai government source stated earlier this month that the corporation has discussed a possible manufacturing plant after assessing a location late in 2023. Nonetheless, Tesla's goals in Southeast Asia will face competition from BYD, which has surpassed competitors to account for more than a quarter of EV sales in the area.

In contrast to Tesla's direct-to-customer strategy, BYD has formed alliances with huge, local businesses, allowing the automaker to broaden its reach, test consumer preferences, and manage complex regional laws.

According to Counterpoint, the Chinese EV maker sold more than 26% of all cars in Southeast Asia's modest but rapidly increasing EV market in the second quarter of 2023, with Tesla accounting for roughly 8%. EVs accounted for 6.4% of all passenger car sales in the region during the quarter, up from 3.8% the previous quarter.