28-05-2025
SA Premier Backs Elon Musk's Planned Tesla Factory Amid Local Opposition
South Australian Premier Peter Malinauskas has backed a plan for a Tesla factory in the state despite protest from activist group 'Trees Not Teslas.'
Developer MAB CCT is seeking to build a factory for Tesla tenancy in the suburb of Tonsley in Adelaide.
The facility would establish a long-term tenancy for Tesla, enable the repurposing of Tesla batteries, and create a showroom for Tesla vehicles.
However, Trees Not Teslas has set up a webpage encouraging the community to oppose this development, arguing that it destroys green spaces and is linked to CEO Elon Musk.
'Associating with a company like Tesla (and subsequently Elon Musk) risks bringing protests to the area, gives the community a bad image, and hurts Tonsley's reputation,' the activist group
SA Premier Defends Tesla
But Malinauskas told reporters that Tesla has a 'pretty good track record in South Australia,' especially when it came to renewables.
'Any time we see any big, major industrial investment in our state, in my view, it is welcome,' he told reporters.
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Malinauskas indicated he disagreed with Musk's politics but added, 'If he wants to spend money in South Australia, creating jobs for South Australians, I'm fine with that.'
Development Details
The City of Marion Council is proposing to sell community land in Tonsley to the developer at market value, council documents show
The proposed development site is the former Mitsubishi Motors Australia plant, and now forms part of the Tonsley Innovation District, where Tesla has a presence.
The council argued in its public consultation letter that the facility would create 100 jobs, financially benefit the council, and generate revenue.
'Tesla have an existing presence at Tonsley and strong connection to the clean technology energy agenda of the Tonsley Innovation Precinct,' City of Marion
'Chestnut Court Reserve has not been accessible to the public since 2016 due to contamination concerns. Through the sale of the land, MAB CCT Pty Ltd would be required to address the contamination to support a future development application.'
In response to the public consultation on the proposal
Among submissions opposing the development, there was an 'anti-Tesla and anti-Elon Musk sentiment.'
The responses reflected 'distrust of Musk's influence,' 'disapproval of Tesla as a company,' and 'moral objections,' according to the City of Marion May 27 report.
'Several submissions reflect strong ideological opposition to Elon Musk and Tesla,' the report stated.
It noted the feedback did not relate to the site or project-specific impacts, but instead reflected broader fears.
'They introduce complex global issues into a local planning context,' the council added.
However, despite this criticism, council officers argued the project offered innovation, economic, and employment advantages.
'Despite ideological and environmental critiques, the proposal offers significant benefits that appear to outweigh the objections. The land is currently unused because it is contaminated with all council assets being demolished over 10 years ago,' council officers argued.
'It is unlikely that this land would ever be considered suitable for residential occupation again, however, its use as an extension of the Tonsley Precinct and the location for a new factory/warehouse focusing on battery repurposing, vehicle servicing and showroom functions is a good use for land that is currently under-utilised.
In conclusion, council officers said the benefits outweighed the 'geopolitical of symbolic' criticisms expressed in submissions.
'While several objections to the proposal refer to ideological opposition to Elon Musk or Tesla's global position, these do not directly undermine the local merits of the developer's proposal,' they said.
Shares Surge After Musk Returns
However, Tesla shares were up 5.34 percent in U.S. markets on May 27 in response to Musk announcing he would be back to working at his companies.
'Back to spending 24/7 at work and sleeping in conference/server/factory rooms. I must be super focused on X/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out,' Musk posted to X.
Musk's Tesla, created in 2003, is the world's top-selling electric vehicle brand and dominates EV markets globally.
His signature EVs include Model S, Model X, Model 3, Model Y, Cybertruck, and the upcoming Roadster high-performance sports car.
