Last Updated: 11:40AM EST
Elon Musk, CEO of Tesla, has strongly denied a report from the Wall Street Journal that stated the company is in early discussions with Saudi Arabia regarding the establishment of a manufacturing facility. Musk took to social media platform X to express his frustration, labeling the article “utterly false.”
According to the Wall Street Journal, Tesla is allegedly in talks with Saudi Arabia about the possibility of building a manufacturing facility within the kingdom. This move is part of Tesla’s strategy to secure essential metals for its electric vehicles and help Saudi Arabia diversify its oil-dependent economy. The negotiations are still in their early stages and could potentially face obstacles due to the strained relationship between Musk and the Saudis.
Saudi Arabia has been actively pursuing the acquisition of metals needed for electric vehicles from countries like the Democratic Republic of Congo. One proposal involves providing financing to commodities trading company Trafigura for a cobalt and copper project in Congo, which would supply Tesla with the necessary materials. This deal could greatly contribute to Tesla’s goal of selling 20 million vehicles annually by 2030.
Furthermore, if the negotiations are successful, it would not only benefit Tesla but also aid Saudi Arabia in attracting foreign investment and advancing its efforts to access and refine metals for renewable energy production. Currently, Tesla manufactures electric vehicles in the United States, China, and Germany, and has plans to open a Gigafactory in Mexico.
Is Tesla Stock a Good Buy Now?
Analysts, on the other hand, remain largely undecided about the prospects of Tesla stock. With a hold consensus rating based on 11 buys, 12 holds, and five sells, analysts indicate caution when it comes to investing in TSLA shares.