Skip to content Skip to Search
Skip navigation

Musk terms Tesla’s Saudi factory talks ‘utterly false’

Tesla CEO Elon Musk has said that the company will pick a location for a new factory by the end of 2023 Reuters/Gonzalo Fuentes
Tesla CEO Elon Musk has said that the company will pick a location for a new factory by the end of 2023

Billionaire Elon Musk has termed a media report about Tesla Inc. being in talks with Saudi Arabia to set up a production facility in the kingdom as “utterly false”.

The Wall Street Journal (WSJ) reported on Monday, citing informed sources, that the kingdom is in early talks with US electric vehicle (EV) maker Tesla.

“Yet another utterly false article from WSJ,” Musk said in a post on the messaging app X (formerly Twitter).

Saudi Arabia has been luring Tesla with the right to purchase certain quantities of metals and minerals the company needs for its EVs from certain countries, including the Democratic Republic of Congo, the report said.

One of the proposals the kingdom was considering involves extending financing to commodities trader Trafigura for a flailing Congo cobalt and copper project, which could help provide a Tesla factory with supplies, the report added.

In May, Musk said that Tesla would pick a location for a new factory by the end of 2023. It currently has six factories and is building a seventh in Mexico in northern Nuevo Leon state.

President Tayyip Erdoğan has asked Musk to build a vehicle factory in Turkey, the country’s communications directorate said. Reuters reported in August that Tesla’s senior executives met Indian government officials to discuss building a factory in India.

Tesla aims to sell 20 million EVs annually by 2030, up from around 1.3 million in 2022.

Currently, Saudi Arabia’s sovereign Public Investment Fund (PIF) is the majority investor in Lucid Group, a US-based EV startup that is a challenger to Tesla.

The construction of Lucid’s manufacturing facility in Saudi Arabia is well underway, with vehicle re-assembly operations expected to commence in September 2023, it said in its second-quarter earnings release last month.

PIF owns 60.2 percent of Lucid, with its investments reaching $5.4 billion since 2018.

Latest articles

EGSH

Dubai launches one-stop hub to streamline government services

People in Dubai can now obtain an Emirates ID, register a company, open a bank account and more under one roof following the opening of the Emirates Government Services Hub (EGSH). Owned by Sheikh Mohammed Bin Maktoum Bin Juma Al Maktoum, a member of the Dubai Royal family, EGSH allows clients to access all essential […]

In association with
Thailand's consul general Kitinai Nutakul visits the Saudi Ministry of Foreign Affairs in Jeddah

Thailand opens investment office in Saudi Arabia

Thailand’s Board of Investment (BOI) is opening its first Middle East office in Saudi Arabia, signaling a deepening of economic ties between the nations after a longstanding diplomatic spat. The office will focus on attracting Saudi investment into Thailand’s targeted industries and supporting Thai entrepreneurs looking to invest in the region, the BOI said in […]

hajj saudi arabia

Saudia reports big rise in international passengers

Saudi Arabia’s national carrier Saudia reported a 24 percent increase in international passengers to 9.1 million in the first half of 2024. There was also a 13 percent rise in the number of flights. The Hajj pilgrimage in June played a large part in the growth.  The number of passengers flying on domestic routes rose […]

renewables target dam

World is off track to meet Cop28 renewables goal

The world is far from reaching its 2030 renewables target, the International Renewable Energy Agency (Irena) said on Thursday. Countries committed at the Cop28 summit in Dubai last year to treble renewables capacity in order to limit global warming to 1.5C. To stay on course global capacity growth needs to accelerate to a minimum rate […]