Recently, Wall Street Journal reported that Saudi Arabia is in talks with Tesla about setting up a manufacturing facility there, but Elon Musk took to Twitter to deny the report. This news has sparked interest and discussion among technology enthusiasts, business analysts and investors alike.
The Wall Street Journal reported that Saudi Arabia is discussing the possibility of Tesla setting up a gigafactory in the country. The kingdom has been aggressively trying to diversify its economy away from oil, and any deal with Tesla could be beneficial for both parties involved. However, Elon Musk took to Twitter to deny the reports, stating that the news was “yet another utterly false article from WSJ.”
The talks between the Saudi government and Tesla are said to be at a very early stage and could fall apart. Any deal could also be complicated due to Musk’s contentious relationship with the Saudis, as well as Saudi Arabia’s ongoing partnership with Tesla’s rival, Lucid Group. However, the fact that the talks are even taking place indicates the kingdom’s interest in investing in sustainable technologies and vehicles in order to reduce their dependence on oil.
According to the report by the Wall Street Journal:
The talks are at a very early stage and could fall apart. Any deal could be fraught with complications, given Tesla Chief Executive Elon Musk’s contentious relationship with the Saudis as well as the kingdom’s existing partnership with the company’s electric-vehicle rival Lucid Group.
Saudi Arabia has been wooing Tesla with the right to purchase certain quantities of metals and minerals the company needs for its EVs from countries including the Democratic Republic of Congo, some of the people said. The Saudis approached the Congolese government in June about securing assets in the country, which supplies around 70% of the world’s cobalt, The Wall Street Journal has reported.
One of the proposals Saudi Arabia is considering involves extending financing to commodities-trading giant Trafigura for a flailing Congo cobalt and copper project, which could ultimately help supply a Tesla vehicle factory in the kingdom, people familiar with the matter said.
One of the proposals that Saudi Arabia is considering involves extending financing to commodities-trading giant Trafigura for a flailing Congo cobalt and copper project, which could ultimately help supply a Tesla vehicle factory in the kingdom. However, it is important to note that any deal could be fraught with complications. Tesla has been trying to reduce its reliance on cobalt, which is known to be mined in dangerous conditions, and has been replacing it with nickel and other metals.
Despite the denial from Elon Musk, it is no secret that Tesla is interested in expanding its global footprint, especially in markets where demand for electric vehicles is growing rapidly. Last year, Tesla announced its plans to build a gigafactory in China to cater to the growing demand in that market. Tesla is also building a new factory in Texas and has plans to open factories in other parts of the world in the near future.
In conclusion, Wall Street Journal’s report on Tesla’s discussions with the Saudi government to set up a gigafactory has been denied by Elon Musk. While any deal between the two parties could be beneficial, it is important to remember that talks are still at an early stage and could fall apart. Tesla is focused on global expansion, and any plans to open factories in new markets are usually met with great interest. Only time will tell if Saudi Arabia and Tesla will enter into a partnership, but one thing is for sure, Elon Musk did not mince his words when he denied the report.