Saudi Arabia in Early Talks with Tesla Inc to Establish EV Factory, Says WSJ

Saudi Arabia is in its early talks with Tesla, a US-based electric vehicle manufacturer, to establish its EV manufacturing plant in the region, as the Wall Street Journal reported on Monday.

The report came out after Turkish President Tayyip Erdogan talked to Elon Musk, CEO of Tesla, about establishing an EV manufacturing facility in Turkey, based on the country’s communication directorate. On Monday, Tesla CEO also met with Israeli Prime Minister Benjamin Netanyahu in California.

Elon Musk refused to respond to a post on X social media platform (formerly Twitter), while Saudi Arabia’s sovereign fund, the Public Investment Fund, also avoided commenting on this report.

Saudi Arabia has been trying to win the right to purchase a certain quantity of metals and minerals from Tesla to produce its electric vehicles, including the Democratic Republic of Congo, highlighted in the WSJ report.

Saudi has been trying to shift its conventional fuel-based economy to something more sustainable. In contrast, its sovereign wealth fund is a major investor in Lucid Group, an EV startup that aims to challenge Tesla in the electric vehicle market.

The WSJ report mentioned that the Kingdom plans to extend financing to commodities trader Trafigura for a flailing Congo cobalt and copper project. It will help Tesla with the necessary supplies for the production of EVs. A spokesperson from Trafigura said it was reviewing the option for the Mutoshi project in Congo during the rising cost and low cobalt prices.

Musk stated that the company will probably select the location for its new EV facility by the end of this year. Tesla has six factories globally and is developing a seventh in Mexico in northern Nuevo Leon state.

Tesla, a leading EV maker, plans to manufacture and sell over 20 million electric vehicles by 2030, 1.3 million higher than in 2022.