Saudi Arabia in Talks with Tesla to Set Up Manufacturing Facility: Report

According to sources familiar with the matter, Saudi Arabia is in early discussions with Tesla to establish a manufacturing facility in the kingdom, as reported by the Wall Street Journal. The Saudi Arabian government has been enticing Tesla by offering them the right to procure specific quantities of metals and minerals required for the production of their electric vehicles. These resources would be sourced from various countries, including the Democratic Republic of Congo.

One of the proposals being considered involves extending funding to commodities-trading giant Trafigura for a struggling cobalt and copper project in Congo. This project could potentially supply a Tesla vehicle factory. However, it should be noted that neither Tesla nor the Saudi Arabian Ministry of Media has responded to requests for comment on this matter.

This potential partnership between Saudi Arabia and Tesla highlights the kingdom’s efforts to strengthen its presence in the electric vehicle industry. By collaborating with a leading electric automaker like Tesla, Saudi Arabia could establish itself as a key player in the global electric vehicle market.

It is important to note that these discussions are still in the early stages, and no formal agreement has been reached between the two parties. However, such a partnership could open up new opportunities for both Tesla and Saudi Arabia. Tesla could benefit from access to the kingdom’s abundant resources and potential financing for its manufacturing operations. On the other hand, Saudi Arabia could gain technological expertise and establish itself as a hub for electric vehicle production in the Middle East.

Overall, the potential collaboration between Saudi Arabia and Tesla reflects the growing importance of electric vehicles in the global automotive industry. It also demonstrates Saudi Arabia’s commitment to diversifying its economy and reducing its dependence on oil. This partnership, if realized, could have significant implications for the future of both Tesla and the Saudi Arabian automotive industry.

Sources: Wall Street Journal, Reuters.