Sources say Tesla is close to reaching a preliminary agreement to build an electric car factory in Indonesia, with a target of 1 million vehicles a year.

Thank you, Mr. Air, a netizen of CTOnews.com, for your clue delivery! CTOnews.com, January 11 (Xinhua) according to Bloomberg, Tesla is about to reach a preliminary agreement to build a factory in Indonesia, with a goal of producing 1 million cars a year.

Tu Yuan Pexels, however, the deal has not yet been formally signed and the agreement may still fail. When asked about potential deals on Wednesday, Indonesian Investment Minister Bahlil Lahadalia said the negotiations with Tesla were led by the Ministry of Maritime and Investment Coordination. Representatives of the ministry did not immediately respond to a request for comment.

Indonesia has long courted Tesla, reaching a $5 billion nickel supply deal with the carmaker last year. Indonesian President Joko Widodo said in an interview with Bloomberg in August that the country wants Tesla to produce electric cars there, not just batteries. Musk is willing to take the time to convince Musk to see Indonesia as more than just a supplier of critical resources.

If the deal goes through, the Indonesian factory will become Tesla's third factory outside the US domestic market, with the first two factories in Shanghai and Berlin. While Indonesia is the gateway to 675 million consumers in Southeast Asia, it is a difficult market for global carmakers, as inexpensive cars priced below $20000 account for the bulk of sales.

CTOnews.com learned that Tesla delivered fewer vehicles than expected last quarter and failed to meet its target of 50 per cent annual sales growth.