Last Updated: 11:40AM EST
Elon Musk has denied a Wall Street Journal report stating that Tesla (NASDAQ: TSLA) is in early discussions with Saudi Arabia about establishing a manufacturing facility. Musk took to X to write, “Yet another utterly false article from WSJ.”
First Published: 9:08AM EST
EV major Tesla could be in early discussions with Saudi Arabia about establishing a manufacturing facility within the kingdom as part of its ambitious plan to secure essential metals for electric vehicles and diversify its oil-dependent economy, according to a Wall Street Journal report.
The negotiations are preliminary and could face complications due to the contentious relationship between Tesla’s CEO, Elon Musk, and the Saudis. Saudi Arabia has also been pursuing the right to acquire metals needed for EVs from countries like the Democratic Republic of Congo. One proposal involves providing financing to commodities trading company Trafigura for a Congo cobalt and copper project to supply Tesla. This move could help Tesla achieve its goal of selling 20 million vehicles annually by 2030.
A successful deal would also aid Saudi Arabia in attracting foreign investment and further its efforts to access and refine metals for renewable energy. Tesla currently manufactures EVs in the U.S., China, and Germany and has plans to open a Gigafactory in Mexico.
Is Tesla Stock a Good Buy Now?
Overall, analysts remain sidelined about TSLA stock with a Hold consensus rating based on 11 Buys, 12 Holds, and five Sells.