“Saudi Arabia in Early Talks with Tesla for EV Factory Amid Global Interest”

"Saudi Arabia in Early Talks with Tesla for EV Factory; Elon Musk Denies Reports"

Saudi Arabia is said to be engaged in preliminary discussions with American electric automaker Tesla regarding the establishment of a manufacturing facility within the kingdom, as reported by the Wall Street Journal, citing insider sources. However, Tesla’s CEO, Elon Musk, has contradicted this report in a social media post on X.

This development coincides with Turkish President Tayyip Erdogan’s request to Tesla CEO Elon Musk for the construction of a vehicle factory in Turkey, as confirmed by the country’s communications directorate.

Elon Musk is further scheduled to meet with Israeli Prime Minister Benjamin Netanyahu in California on the same day.

Saudi Arabia has been actively courting Tesla by offering the automaker the opportunity to procure specific quantities of metals and minerals essential for its electric vehicle production from various countries, including the Democratic Republic of Congo, according to the Wall Street Journal’s report.

The kingdom has been working to diversify its economy away from oil dependence, and its sovereign wealth fund is the major investor in Lucid Group, one of the electric vehicle startups seeking to challenge Tesla’s dominance in the industry.

Among the proposals under consideration by the kingdom is extending financial support to commodities-trading giant Trafigura for a troubled cobalt and copper project in Congo. This project could potentially supply a future Tesla factory with necessary resources, as reported by WSJ.

Both Tesla and Trafigura have yet to respond to requests for comment from Reuters, while Saudi Arabia’s sovereign fund, the Public Investment Fund, declined to provide a statement.

In May, Elon Musk stated that Tesla would likely select a location for a new factory by the end of the year. Currently, the company operates six factories and is in the process of constructing a seventh in Mexico, part of its strategic expansion to enhance its global presence.

Tesla has set an ambitious target to sell 20 million vehicles annually by 2030, a substantial increase from the approximate 1.3 million units sold in 2022.

Sources By Agencies

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