Billionaire Elon Musk is reportedly in early talks with Saudi Arabia to build a new electric vehicle (EV) manufacturing facility in the country. The oil-rich nation is seeking to diversify its economy away from oil and secure metals needed for EV production.
According to sources cited by the Wall Street Journal, discussions between Saudi Arabia and Tesla are centered around the country’s desire for Tesla’s assistance in securing cobalt from Africa. However, any potential deal would need to overcome the contentious relationship between Musk and the Saudis. The country holds a majority stake in rival EV maker Lucid Motors and had declined to take Tesla private in 2018.
While neither Tesla, Musk, nor Saudi Arabia has commented on the report, it is clear that there are significant hurdles to overcome. The Saudi government has been actively seeking foreign investment, but their history with Musk could complicate negotiations.
This news comes as Tesla is also expanding its supply system via India. The company plans to import automotive parts worth up to $1.9 billion from India this year, doubling the amount imported last year. Commerce Minister Piyush Goyal confirmed Tesla’s plans, stating that the company had already purchased $1 billion worth of components from India last year.
There have been reports of Tesla holding talks with the Indian government to explore the possibility of establishing its auto parts and electronics chain in the country.
Overall, Elon Musk’s potential collaboration with Saudi Arabia and the expansion of Tesla’s supply system highlight the company’s continued efforts to establish a global presence in the electric vehicle industry.
Sources:
– Wall Street Journal