• 5 days Stocks Tumble After Moderna Chief Warns Existing Vaccines Could Be Less Effectiv
  • 6 days The EU Is Pushing Two Massive Digital Laws To Tame Big Tech
  • 9 days U.S.-China Trade War Has Under Biden
  • 11 days Visa, Mastercard Slump Amid Covid Worries, Regulatory Outlook
  • 12 days 3 Biotech Stocks Wall Street Loves This Quarter
  • 16 days Fintech Goes “Green”, Joining $30T ESG Boom
  • 17 days U.S. Cargo Theft Spikes Amid Huge Supply Chain Snarl Ups
  • 18 days Buybacks Are Back, But New Taxes Could Dull the Party
  • 20 days Don’t Be Fooled By Musk’s Twitter Performance
  • 25 days 3 Healthcare Sector Stocks to Watch Right Now
  • 26 days More Trouble Ahead for Supply Chain as Hackers Descend
  • 27 days Saudi Arabia To Invest $64 Billion Into Becoming A New Global Cinema Hub
  • 30 days The Cryptic Squid Strikes, Netting Scammers Nearly $4M
  • 30 days October Jobs Impress but Inflation Threatens Recovery
  • 32 days Another Round of ‘Meme’ Stocks Coming Our Way?
  • 33 days 2021’s Black Friday Bummer
  • 34 days Buy-Now-Pay-Later Is A Huge Threat to Credit Cards
  • 37 days Microsoft Passes Apple As World’s Most Valuable Company Amid Stellar Earnings
  • 38 days 3 IPOs from Big to Small Coming Our Way
  • 39 days Robinhood Investors Balk at ‘Meme’ Growth
China Lifts Cap On Births, Allows Three Children Per Couple

China Lifts Cap On Births, Allows Three Children Per Couple

Following a politburo meeting chaired…

Big Business’ New COVID Initiative: No Jab, No Job

Big Business’ New COVID Initiative: No Jab, No Job

U.S. employers are stepping up…

$12M Seized in Massive US-Dubai Money-Laundering Raid

$12M Seized in Massive US-Dubai Money-Laundering Raid

According to the court filing,…

Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  1. Home
  2. News
  3. Breaking News

Saudis Sovereign Wealth Fund Eyes Tesla Rival

Riyadh

Saudi Arabia’s sovereign wealth fund may buy an electric car maker competing with Tesla in the luxury car segment, Reuters reports, citing unnamed sources. According to them, the talks between PIF and Lucid, a private company based in California, are private and may not lead to a deal in the end.

However, if they do, PIF could become a majority shareholder in Lucid for US$1 billion. PIF would pay half at the completion of the deal, while the other half will be divided into two installments, dependent on Lucid achieving specific production milestones.

If the talks do lead to a deal, this would jeopardize the plans of Tesla’s chief executive Elon Musk to take the company private with the help of Saudi money—plans that he recently shared on Twitter, which caused the latest media frenzy along with an SEC probe into whether his “funding secured” statement about the plan was founded on fact.

Musk said he had plans to take Tesla private at a price of US$420 per share. When pressed by the media and financial market regulators, the CEO revealed he had been in talks with PIF for a couple of years, and the fund’s managers had made it clear to him the final decision was his. Related: This Tech Giant Is Pushing For Blockchain Adoption

Now that PIF may be negotiating another deal, Musk could be hard pressed to find the US$72 billion to take Tesla private, although he said probably two-thirds of current Tesla shareholders would stay with the company when it goes private, if it does. Saudi Arabia’s PIF is among these shareholders, after amassing a stake close to 5 percent.

The negotiations with Lucid show Saudi Arabia’s growing interest in electric vehicles as it seeks to diversify its economy away from oil. The Fremont company has not yet started mass producing vehicles, but two years ago it released a prototype for a luxury sedan, the Lucid Air, which comes with a price tag of US$100,000. Mass production was slated to begin by the end of this year.

By Irina Slav for Oilprice.com

More Top Reads From Safehaven.com

Back to homepage

Leave a comment

Leave a comment