Tesla Inc is nearing a preliminary deal to build one million units of production capacity in Indonesia, Bloomberg News reported, citing sources.

The country's investment minister confirmed talks with the world's most expensive automaker.

Tesla makes its electric cars at its gigafactories in Shanghai, Austin, Berlin and Fremont, California, and is reportedly about to announce a new plant in the Mexican state of Nuevo Leon.

Negotiations include plans for production capacity and easing the supply chain.

CEO Elon Musk said in November that South Korea was one of the main candidates for a plant the company plans to build in Asia to produce electric cars.

Tesla has signed contracts worth about $5 billion to buy materials for its batteries from nickel refiners in Indonesia, a senior Indonesian cabinet minister said last year.