According to a recent report from The Wall Street Journal, Tesla is in discussions with Saudi Arabia to secure the rights to purchase specific amounts of metals and minerals required for its electric vehicles. The kingdom has been attempting to diversify its economy away from oil, and its sovereign wealth fund is a major investor in Lucid Group, an EV startup aiming to rival Tesla.
Saudi Arabia is considering several proposals, one of which involves providing financing to commodities trader Trafigura for a struggling cobalt and copper project in the Democratic Republic of Congo. This move would ensure a steady supply of materials for a potential Tesla factory.
While the specifics of the negotiations remain undisclosed, it is clear that Saudi Arabia is looking to forge strong ties with Tesla as it seeks to expand its presence in the electric vehicle market. The kingdom’s efforts to transition from an oil-dependent economy have emphasized the development of alternative industries, with EV manufacturing being a key focus.
Tesla, headed by CEO Elon Musk, has not yet issued any official statements regarding these talks. Similarly, the Saudi sovereign wealth fund, the Public Investment Fund, has declined to comment on the matter.
This development comes in the wake of Turkish President Tayyip Erdogan’s request to Elon Musk to consider establishing a vehicle factory in Turkey. Additionally, Musk is scheduled to meet with Israeli Prime Minister Benjamin Netanyahu during his trip to California.
As Tesla continues to strive towards its goal of selling 20 million vehicles per year by 2030, expanding its global operations and securing reliable sources of essential materials will be crucial. These potential partnerships with Saudi Arabia and Turkey could play a significant role in the realization of Tesla’s ambitious plans for growth and dominance in the electric vehicle industry.
Sources:
– The Wall Street Journal