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 key battery metals. The plant would produce as many as 1 million cars a year, the people said, in line with Tesla’s ambition to have all its factories globally reach that capacity. The discussions include plans around multiple facilities in the country, serving different functions across production and the supply chain, one of the people said. A deal hasn’t been signed and the agreement could still fall through, said the people, asking not to be identified as the talks are confidential. Musk and representatives for Tesla didn’t immediately respond to an email
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