Saudi arabia invest in tesla

Tesla’s Gigafactory, under construction in Sparks, Nevada, will be the largest building in the world, by footprint, when it’s finished. There may be solid financial reasons for the PIF investment in Lucid. Similarly, in the Middle East, seemingly outlandish projects can be shoved through with the sheer force of royal will. Group Subscription. Ellen R. After all, the PIF regularly invests in big ideas, especially in tech.

Saudi Arabia has agreed to invest more than $1 billion in Lucid, a potential Tesla competitor.

But, according to Musk, who recently made news when he talked and tweeted about taking Tesla private, the investors controlling Saudi Arabia’s sovereign wealth fund have approached him multiple times since the beginning of last year. Buying Tesla would certainly send that signal. Owning a brand viewed as prestigious, like Tesla, comes with the same cachet, in a way investing in Ford, Fiat, or even Ferrari never. Another Gulf country, Dubai, provides a model for how to diversify like crazy and make money in other sectors. Dubai has built a tourism industry, also based in no small part around superlatives. It has private islands shaped like the world, saudi arabia invest in tesla from space. Saudi Arabia may also be looking west, to Norway, for inspiration.

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While Tesla CEO Elon Musk teased last week about taking the company private, several suitors may have already been courting the electric-car maker months ago. Saudi Arabia’s Public Investment Fund, the country’s sovereign wealth fund, is in talks with Tesla about becoming a significant investor as part of a move toward privatization, sources with knowledge of the fund’s plans told Bloomberg on Sunday. The Saudi investment fund approached Musk months ago to discuss acquiring a minority stake but was turned down as the company did not plan on issuing new shares at the time, a source close to the discussions told Bloomberg. The fund has not yet made any concrete plans with Tesla on increasing its stake, sources told Bloomberg, but talks are ongoing, and continued investment in the company is seen as a strategic step toward diversifying the Saudi economy away from oil. He later issued a formal statement on the company’s website. In his statement, Musk said taking the company private was «the best path forward» and added that a shareholder vote must be held before a final decision could be made.

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But, according to Musk, who recently made news when he talked and tweeted about taking Tesla private, the investors controlling Saudi Arabia’s sovereign wealth fund have approached him multiple times since the beginning of last year. Buying Tesla would certainly send that signal. Owning a brand viewed as prestigious, like Tesla, comes with the same cachet, in a way investing in Ford, Fiat, or even Ferrari never. Another Gulf country, Dubai, provides a model for how to diversify like crazy and make money in other sectors.

Dubai has built a tourism industry, also based in no small part around superlatives. It has private islands shaped like the world, visible from space.

Saudi Arabia may also be looking west, to Norway, for inspiration. It used some of that money to grant generous subsidies to electric car buyers, and now more EVs are sold there than gas carsgiving the country a well-earned reputation as a leader in green transport technology. There are some ways that Musk may saudi arabia invest in tesla well with Saudi investors. As spelled out in a new series of interviews in Wired UKMusk abhors red tape and the status quo, and will throw everything at making his vision real.

Similarly, in the Middle East, seemingly outlandish projects can be shoved through with the sheer force of royal. In Dubai, that means giant man-made islands in the shape of palm trees erupted from the waters of the Gulf and new lane roads and a monorail linking up once remote areas. Now, Dubai and Saudi Arabia are both working with Virgin Hyperloop One to make a different Musk-imagined transport technology a reality.

But, despite its heft, even the large Saudi fund is unlikely to afford buying out all Tesla shareholders single-handedly. That could include other large players, like Softbank which owns 5 percent and pension and institutional investors. So the Saudi Arabian fund would be one partial owner amongst several—they’d all just be private owners instead of shareholders on a public exchange, with all the reporting and performance requirements that entails.

Women only just won the right to drive in June, and the country is accused of human rights violations against religious minorities and dissidents. Charge those Telsa batteries, there’s a long road ahead. Tesla’s Gigafactory, under construction in Sparks, Nevada, will be the largest building in the world, by footprint, when it’s finished.

The batteries it produces are crucial to Tesla’s plan to make affordable electric vehicles. Featured Video. Topics Tesla Electric Vehicles.

But when the PIF puts a billion dollars in a startup American electric car company, and when it does so just a month after Tesla touted that same fund as its lifeline…we may have just witnessed one of the greatest financial insults of all time. Another Gulf country, Dubai, provides a model for how to diversify like crazy and make money in other sectors. As spelled out in a new series of interviews in Wired UKMusk abhors red tape and the status quo, and will throw everything at making his vision real. Ellen R. It will not bring jobs to Saudi Arabia. Search the FT Search. Team or Enterprise. Topics Tesla Electric Vehicles. That could include other large players, like Softbank which owns 5 percent and pension and institutional investors. At best, this investment will return a profit to the PIF. Featured Video. The batteries it produces are crucial saudi arabia invest in tesla Tesla’s plan to make affordable electric vehicles. For 4 weeks receive unlimited Premium digital access to the FT’s trusted, award-winning business news. Tesla’s Gigafactory, under construction in Sparks, Nevada, will be the largest building in the world, by footprint, when it’s finished. Saudi Arabia may also be looking west, to Norway, for inspiration. Choose your subscription.